Verizon is pushing for a $1-billion discount off its upcoming $4.83-billion deal to purchase Yahoo’s Internet business, citing privacy concerns in light of the massive security breach targeting more than 500 million Yahoo account holders.
Yahoo and Verizon struck the $4.83-billion all-cash deal back in July but, since then, it has been revealed that Yahoo was the target of a breach in 2014 — one that the tech titan was completely unaware of until this summer.
The New York Post, citing sources, is reporting that Verizon, which also owns AOL, believes that the hack in addition to rumors that Yahoo has been scanning customer e-mails at the U.S. government’s request, has lessened the company’s value.
“In the last day we’ve heard that (AOL CEO Tim Armstrong) is getting cold feet,” a source told the Post. “He’s pretty upset about the lack of disclosure and he’s saying can we get out of this or can we reduce the price?”
Armstrong, the source added, has been in meetings with Yahoo executives the past few days in a bid to negotiate a price reduction.
“Tim was out there this week laying the law down and Marissa is trying to protect shareholders,” a source “close to talks” said, adding that Yahoo CEO Marissa Mayer and her team have dug in their heels at Armstrong’s attempt to negotiate a lower price.
Neither Yahoo nor Verizon were willing to comment on the report.