Verizon still buying Yahoo despite that epic security breach

Washington

WHEN reports surfaced last week that Verizon was renegotiating its deal to acquire Yahoo, some analysts were stunned to learn how little of a price cut the telecom giant was seeking - around US$250 million - despite the Web company's historic mis-steps with customer security. But on Tuesday, the two companies agreed to a discount of US$350 million, or about 7 per cent.

Some analysts thought the epic hacks affecting hundreds of millions of Yahoo accounts gave Verizon licence to ask for a massive price cut from the initial US$4.8 billion price tag. But Verizon didn't seek a bigger discount because its internal investigation showed that only a "minimal" number of Yahoo's monthly active users abandoned the company after it disclosed the data breaches, according to multiple people familiar with the matter.