Verizon Tries For $1 Bln Cut In Yahoo Deal After Hacking, Spying Reports

(RTTNews) - Verizon Communications (VZ) is trying for a $1 billion discount off its pending $4.8 billion agreement to buy Yahoo (YHOO) amid recent reports of hacking and spying, the New York Post reported Thursday, citing several sources.

As per the report, Verizon looks for a discount as it feels that Yahoo's value has been diminished. Meanwhile, Yahoo is said to be pushing back hard against any attempts to negotiate the price down.

Yahoo recently had revealed that at least 500 million of its accounts were hacked in 2014. It was also reported this week that Yahoo had been ordered by a secret Foreign Intelligence Surveillance Court to scan emails for terrorist signatures.

It was in July this year that Verizon agreed to buy Yahoo's core internet properties for $4.83 billion in cash.

With the proposed acquisition, Verizon has been planning to combine Yahoo with its AOL unit that would become a third force to compete with Google and Facebook for digital ad dollars.

It is expected that the combination of AOL/Yahoo will reach about 1 billion consumers if the deal closes in the first quarter, with a stated goal to reach 2 billion by 2020.

As per the report, AOL head Tim Armstrong is meeting with Yahoo executives trying for a price reduction.