Verizon is refuting the rumor that it has been demanding a $1-billion discount off its upcoming $4.83-billion deal to purchase Yahoo’s Internet business.
The telecommunications giant told Zacks.com the media reports were “total speculation,” adding that Yahoo’s core assets were fairly valued.
Verizon was rumored to be furious over the massive security breach — targeting more than 500 million account holders — that Yahoo belatedly announced last month, well after acquisition talks had been finalized.
Yahoo and Verizon struck the $4.83-billion all-cash deal back in July but, last month, Yahoo admitted it was the target of a breach in 2014 — one that the tech titan was completely unaware of until this summer.
The New York Post reported that Verizon, which also owns AOL, believed the hack in addition to rumors that Yahoo last year had been scanning customer e-mails at the U.S. government’s request, had lessened the company’s value. A number of other media outlets also reported on the story, including SiteProNews.
If the Yahoo-Verizon deal goes ahead as planned, it will likely be finalized in the first quarter of 2017. At that time, Yahoo would be integrated with AOL under Marni Walden, EVP and president of the product innovation and new businesses organization at Verizon.
Once the Yahoo acquisition becomes official, Verizon would then boast one of the largest portfolios of owned and partnered global brands. AOL and Yahoo together would have more than 25 popular brands in its portfolio. Yahoo’s key assets include its finance, news and sports content as well as its popular e-mail service, serving roughly 225 million monthly active users.
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