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Yahoo scandals: Verizon wants billion off sale price, report says
Yahoo, in the midst of a $4.83 billion sale to Verizon and reeling from a massive data breach and reports it spied on its users for the federal government, is being pushed by Verizon to cut $1 billion off the sale price, a new report said.
Two weeks ago, Yahoo made world headlines when it revealed hackers had stolen personal data from at least 500 million users, and that it took the company almost two years to discover it had been hacked. On Tuesday and Wednesday, reports came out in the media that Yahoo had given in to a federal intelligence-court order without a fight and created software to scan its users’ email in real time for the FBI.
In the wake of the two scandals, according to a New York Post article based on anonymous sources, Tim Armstrong, CEO of Verizon subsidiary AOL, is “getting cold feet” and asking, “Can we get out of this (sale) or can we reduce the price?”
The article refers to “Armstrong’s push for a $1 billion discount,” and adds that a source said Verizon had set aside $1 billion to “fund possible liabilities associated with the Yahoo email hack.”
Yahoo’s “deal team” was said to be “pushing back hard” against pressure to cut its selling price.
Photo: A person walks in front of a Yahoo sign at the company’s headquarters in Sunnyvale (AP Photo/Marcio Jose Sanchez, File)