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Yahoo has agreed to take a price cut on the original $4.8bn sale of its core business to Verizon as both companies are determined to complete a deal that was jeopardised after the internet group revealed it had suffered two major data breaches, people involved in the negotiations said.

The US telecom group and the California-based internet search company are close to revising the original agreement down by as much as $300m, said two people briefed about the matter.

A renegotiated agreement is the clearest sign that Verizon and Yahoo want to put the hacking crisis behind them and move ahead with a deal that some feared could collapse due to the potential litigation risks linked to the data breach.

Shares in Yahoo rose more than 2 per cent on Wednesday after Bloomberg first reported that the two companies were close to a renegotiated deal.

After the Verizon deal was announced in July 2016, Yahoo disclosed two major data breaches that affected upwards of 1bn users. Yahoo is also facing a probe by the US Securities and Exchange Commission into whether it had properly disclosed the cyber attacks. Yahoo shares initially jumped more than 2 per cent on the news, before paring some of those gains to trade up 1.6 per cent at pixel time. Verizon shares, meanwhile, dipped 0.7 per cent lower.

Copyright The Financial Times Limited 2017. All rights reserved.
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