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Shares of Yahoo rose more than 2 per cent on Wednesday after reports that Verizon Communications was nearing a renegotiated deal for the company’s internet properties that would reduce the price of its original $4.8bn bid, following Yahoo’s disclosure of two major data breaches after the deal was announced.

Bloomberg News reported that Verizon had reached a tentative deal that would lower the price by about $250m.

Yahoo had previously pushed back its target date for closing the deal from the first quarter of the year until the second.

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.

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