Regarding the news with Verizon’s buyout of Yahoo, according to Bloomberg, the two entities are close to renegotiating a deal between them, which would bring the price down $250 million. This price drop is a lot less than the previously rumored $1 billion that was originally sought by the telecommunications company.
$4.8 billion was the originally announced purchase pricetag.
One of the other provisions of the renegotiation, which more than likely kept the purchase price from being cut even further was the shared liability between Verizon and Yahoo successor Altaba for any data breaches or hacks. The later is going to retain assets not being sold to Verizon. This includes the company’s remaining Alibaba stake. Altaba seems to be a combination of “alternative” and “Alibaba.”
The reason for the Verizon-Yahoo renegotiation was due to several hacking episodes that happened back in 2013 ad 2014. This news came out after the Verizon deal had already been announced, following solicitation of multiple bids for the company.
The reason for the sale of Yahoo was due in large part by institutional investor demands after CEO Marissa Mayer wasn’t able to, after a number of years, to produce satisfying results. Mayer said she wants to remain at Verizon after the deal concludes.
After the deal is planned to be closed this quarter, Verizon is going to have to rationalize and combine its AOL and Yahoo properties. It makes sense to bring up another hurdle for this new venture – Google and Facebook. It was these two competitors that prevented Yahoo from regaining its display advertising leadership.
Yahoo, despite its challenges, is retaining a significant loyal user base and remains the number three US internet property after Google and Facebook, according to the data from comScore.