Verizon Communications Inc. is reportedly seeking a $1 billion discount off its proposed acquisition of Yahoo! Inc.'s operating business for about $4.83 billion, following reports that the latter agreed to scan customers' incoming emails for U.S. intelligence.
Chairman and CEO Tim Armstrong of Verizon unit AOL Inc. met Yahoo executives to pitch for a price cut on the deal. The push is on top of the $1 billion that Verizon may reserve for potential liabilities associated with the email search, the New York Post reported Oct. 6, citing sources.
However, the Yahoo deal team is resisting attempts to lower the deal price, telling Verizon that it has no legal remedies to modify the acquisition's terms. The two companies are still in talks about the matter.
Verizon is considering merging Yahoo assets with AOL in order to create a rival to Alphabet Inc. unit Google Inc. and Facebook Inc. in the digital advertising market, according to the report.