Company - - Feb 16,2017
Internet giant, Yahoo, is close to renegotiating its original deal with Verizon with an estimated price cut of $350m.
Last year, Verizon's purchase of Yahoo's core internet segment was dropped into the pool of uncertainty after the discovery of two cyber attacks.
However, as per current reports, Yahoo has now settled to a price cut of up to $350m along with an agreement to share liability with Verizon for impending lawsuits.
Yahoo shares surged quite significantly after the reports linked to the renegotiations. It was noted that, the shares closed higher by 1.4 percent.
Verizon wishes to merge Yahoo's search, email and messenger assets, along with advertising technology tools, with its AOL unit. Verizon took over AOL for $4.4bn in 2015.
Currently, Verizon targets mobile video and advertising as fresh sources of revenue placed differently from the overcrowded US telecoms market.
On Wednesday, Yahoo revealed additional information originating from the breaches. The company notified several users that it had found proof of attempts to log in to their accounts without a valid password.
It was further added that, those attempts were managed using the data stolen in the hacking incident of 2014.
Yahoo stated last month that it was quite sure that the deal with Verizon would conclude by the end of June.
This long delay has poured a negative impact on Yahoo’s business. In the past few months, the company has continued to lose market share in the field of digital advertising as Google and Facebook have successfully spread their dominance.
The present scenario is quite crucial for Yahoo stockholders as they are eager for the deal to get finalized. It would further help Yahoo to focus on searching ways to extract the worth it’s 15 percent stake in China’s largest e-commerce company, Alibaba, along with its 36 percent stake in Yahoo Japan.