Yahoo has allegedly agreed to lower its initial price of $4.8bn on its sale to Verizon.
Yahoo Close To Verizon Deal With $250-350 Million Price Reduction
Internet group Yahoo is set to be sold to Verizon after Yahoo internet arm was compromised last year following two cyber-attacks.
Reports now indicate that Yahoo has accepted to cut down its sales price by $350m. The former internet giant has also said it will share any liabilities with its buyer in the event of a potential lawsuit.
The final details will be announce later this week.
Verizon’s plan is to bundle together Yahoo’s email, search and messenger properties, and its ad technologies into a single unit as part of the purchase.
Verizon bought off AOL in 2015 for $4.4bn.
According to Verizon, advertising and mobile video are a lucrative source of revenue when compared to the highly competitive telecoms market in the US.
In December last year, Yahoo revealed that it had suffered a widespread cyber-attack in 2013 affecting over a billion of its customers’ accounts.
Earlier in 2014, Yahoo admitted yet another security breach that had compromised the accounts of over 500 million customers.
The US Securities and Exchange Commission investigated whether Yahoo had broken the law by not providing information about the breach sooner than it did.
As part of a security issue pertaining to the breach it admitted to in December, on Wednesday Yahoo sent a warning to customers who may have had their accounts potentially compromised in the incident that took place between 2015 and 2016.
In this latest warning, Yahoo did not indicate how many of its customers might have been affected.
Following the admission last year, Yahoo has been keen on attempting to restore users’ confidence in its search business, which is the company’s primary source of income.
The most recent financial results reveal that search revenue has fallen by 6 percent in the last quarter of 2016.
However, other arms of Yahoo’s business including video, mobile and social advertising have shown greater growth.
Last week, the search company had announced that it would delay the sale of its main internet assets to Verizon saying the final sale will be completed in the second quarter of 2017.
In a statement, the company said, “Yahoo has continued to work with Verizon on the planning process for the sale of its core business.”
Yahoo CEO, Marissa Mayer added that her company’s top priority is the continued protection of its users’ security.
Earlier this year, Yahoo announced however, that Ms. Mayer would not be part of the board members in the Verizon takeover deal.