Verizon, the global communication, and technology leader are all set to acquire the internet asset of Yahoo, and it seems nothing can prevent them from this acquisition. With the hacking controversy of Yahoo going viral, however, it has called for a renegotiation of the deal. Verizon aimed at developing a big digital advertising powerhouse by acquiring Yahoo, and they are still firmed for the same. But things have changed a bit. Previously, it was decided that Verizon will acquire Yahoo’s internet asset at $4.8 billion. But now the company has demanded $250 million off on that asked price. So, the question is why Verizon asks such a big discount.
Actual reasons for the $250 million discount:
- The main reason for which Verizon is demanding such a big discount from Yahoo is the hacking controversies. Yahoo has faced two giant cyber attacks in the past. And the revelation of this news compelled them to run through various issues and condemns as well.
- Marissa Mayer, the current CEO of Yahoo revealed the news of this cyber attacks. Both the attacks affected the huge number of user accounts. The hacking took place in 2013 and 2014. While the later one affected 500 million user accounts the previous one was more hazardous to affect around 1000 million accounts.
- The news was disclosed by Yahoo much later in last September while the other was revealed another three months later. In both the cyber attacks users had their personal information along with password swiped.
- Even though this is the main reason that made Verizon ask for this big discount but some other reasons too contributed in that. Yahoo, while faced such attack definitely but was really late to inform about it to its investors. So, the company is being accused of that. And they are also being investigated by the Securities and Exchange Commission for this allegation.
- Along with these two major reasons, another reason is related to the handling of the email surveillance by Yahoo. Yahoo is heard to build some tools to allow Federal government surveil their user’s email. This news has put them under fire in the last October.
So, it’s not just that hacking controversy rather some more reasons contributed to such big discount altogether.
However, despite all these things, Verizon is still interested in acquiring Yahoo’s internet asset such as Yahoo Mail, fantasy Sports etc. The big telecommunication company had something big in mind which is making them go on with the deal. They acquired AOL in 2015. And now intends to buy Yahoo’s Internet asset so as to combine them and come out with something huge powerful. Verizon’s main aim is to establish themselves as a big digital advertising powerhouse. All these efforts are made for this reason obviously.
Marissa Mayer, the current CEO of Yahoo is a former Google executive. She has refreshed all the Yahoo’s services for tablet and mobile. Thus she brought the company into an era of mobile successfully. But when it comes to utilizing the company’s property to make money out of that, it seems she must be new in that field.