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Verizon reportedly asks for $1B discount on Yahoo sale

The wireless company, set to buy Yahoo for $4.8 billion, reportedly wants the price lowered after Yahoo was caught in recent controversies.

Verizon is reportedly asking for a discount for Yahoo.
Justin Sullivan, Getty Images

Yahoo's bad fortune in recent weeks could come with yet another cost. Verizon, which has agreed to buy Yahoo for $4.8 billion, is now asking for a $1 billion discount, according to a report Thursday by the New York Post.

Yahoo has been hit with a mountain of bad press recently. Earlier this week, it was reported that the US government had Yahoo surveil user emails for intelligence information. And last month, the company disclosed that hackers swiped personal information associated with at least a half billion Yahoo accounts, marking the biggest data breach in history.

Both companies declined to comment.

"In the last day we've heard that Tim [Armstrong] is getting cold feet," a source reportedly told the New York Post, referring to AOL's top boss. "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 last few days to meet with Yahoo executives about a price reduction, though Yahoo's deals team is pushing back, according to the Post.

"All aspects of the story are incorrect," said a source close to Yahoo, who asked not to be identified because the person isn't authorized to comment.

Verizon said in July that it planned to buy Yahoo, with the intention of merging it with AOL, another former internet darling it bought last year. The thinking was to combine the two to form a formidable No. 3 option when it comes to digital advertising, behind Google and Facebook.

The recent controversies are more low marks on CEO Marissa Mayer's record. The former Google executive took the helm at Yahoo in 2012, with hopes she could turnaround the flagging internet pioneer. When the deal was announced, Mayer said she would remain with Yahoo, at least until the deal closed.