New York Post: Verizon to seek $1B discount on $4.83B Yahoo deal

|About: Altaba, Inc. (AABA)|By:, SA News Editor

Following a server rack full of bad news for Yahoo (YHOO), Verizon (NYSE:VZ) will be seeking a $1B discount on its $4.83B deal to acquire the company's core business, the New York Post reports.

Yahoo recently revealed a 2014 data breach that affected 500M user accounts, and Reuters reported that the company built a secret program to allow government intelligence to scan all incoming e-mail.

“In the last day we’ve heard that Tim [Armstrong, AOL chief who would run Yahoo for Verizon] is getting cold feet," an unnamed 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 reportedly flew to the West Coast in the past few days to talk about a reduction: “Tim was out there this week laying the law down and Marissa [Mayer] is trying to protect shareholders,” a source said.

Former Yahoo chief Ross Levinsohn said yesterday that Verizon should be bucking for a reduction. "If I were them, just from a business standpoint, I'd probably reserve a bunch of money against the deal or go back to Yahoo and ask for a discount."

After hours trading: YHOO -0.6%; VZ flat.

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