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Troubled internet company Yahoo (NASDAQ:YHOO) is reportedly close to agreeing a cheaper deal with Verizon, after a data leak threatened to disrupt the sale altogether.
Yahoo initially agreed to sell the majority of its business to Verizon for $4.8 billion, before the disclosure of two hacking attempts put the deal in danger. According to several US reports, Yahoo have now agreed new terms including a price cut of around $350 million and an agreement to share liability with Verizon for potential lawsuits.
Yahoo disclosed the breach in December, which was the largest data security in history. The internet giant said it “believes an unauthorised third party, in August 2013, stole data associated with more than one billion user accounts.”
In response, Verizon said it would “review the impact of this new development before reaching any final conclusions.”
A new deal is expected to be announced within days, with spokespeople from both companies declining to comment.
The original takeover deal was agreed in July, with Verizon purchasing Yahoo’s core Internet businesses, which include its email service, sports verticals and various apps. The remaining business, which includes a 15 percent stake in Chinese e-commerce company Alibaba and 35.5 percent stake in Yahoo Japan, willbe renamed Altaba and be governed by the remaining directors.
CEO Marissa Meyer is expected to step down from the company after the takeover, which will be renamed Altaba.
Investors reacted positively to the news, with Yahoo currently trading up 1.40 percent at 45.65 (1143GMT).