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Verizon sought $925m discount for Yahoo merger, got $350m

Staff Writer |
Verizon Communications sought almost triple the price reduction that it ultimately obtained for Yahoo core assets after two cyber attacks at the internet company.

This is according to a Yahoo filing. The closing of the deal, which Verizon first announced in July for a purchase price of $4.83 billion, had been delayed as the companies assessed the fallout from two data breaches that Yahoo disclosed last year.

Verizon had been trying to persuade Yahoo to amend the terms of the agreement following the attacks.

In early February, Verizon CEO Lowell McAdam told Yahoo director Tom McInerney a price reduction as high as $925 million could be appropriate, according to the filing.

McInerney later told McAdam at a meeting in Verizon's New York offices that Yahoo's board was unwilling to agree to such a big discount.

Verizon said in late February it had agreed to a purchase price of $4.48 billion, lowering its original offer by $350 million.

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