The much-maligned Verizon-Yahoo deal just keeps getting sadder. According to various reports, Verizon is close to revising its deal with fallen tech giant—a move that would slash the price of the deal by about $250 million.
Bloomberg first reported the news of the possible price cut today, citing “people familiar with the matter.” A new deal, however, has been on the table for some time. Verizon has reportedly been reconsidering the original $4.8 billion deal in light of several previously undisclosed security breaches at Yahoo, including a 2013 hack that involved a billion users.
Bloomberg also noted that the new deal could see the two companies “share any ongoing legal responsibilities related to the breaches.” Sucks to be Verizon! In an email to Gizmodo, Verizon declined to comment, while Yahoo said they’ll “get back to [us] soon.” (We’re on the edge of our seats.)
All things considered, $250 million isn’t very much money for either company. Even the higher estimates—Reuters reported the figure could be as much as $350 million—are pretty paltry. It’s barely 5 percent of the total value—pocket change for these titans of the industry. “I am surprised the deal was only cut by $250 million,” Jeff Kagan, an independent industry analyst, told the Washington Post.
But that really doesn’t change the fact that this whole saga is one of the most depressing business stories in recent memory. Yahoo has been beleaguered by a set of controversies stemming from its hacking scandals, unhappy media personalities, and questionable moves of its CEO, Marissa Mayer.
Thanks to Mayer’s failed resuscitation plans for Yahoo—which involved pricey acquisitions, huge layoffs, splashy hires, and a complete disregard for users’ security—the aging tech giant had been stumbling over its own feet for some time. Even its highest paid employees don’t use Yahoo services.
At least Yahoo will get a shiny new name if the Verizon deal ever actually goes through. Oh, wait.
Update 2/21/2017: Yahoo and Verizon announced today they have amended terms of the agreement, reducing the value of the deal by $350 million. In addition, both Verizon and Yahoo will share legal and regulatory liabilities from Yahoo’s recent data breaches.