Verizon reportedly asking for $1 billion discount on Yahoo

When Verizon signed a deal to buy Yahoo for $4.8 billion in July, it looked as if Yahoo’s sinking ship might just have got its anchor. But, seems like the anchorage is still really far off.

First, it was the confirmation on search engine company’ part of a massive data breach in 2014. It was followed by another controversy involving Yahoo’s apparent compliance with U.S. intelligence agencies in secretly scanning customer emails, especially years after the Snowden revelations.

And now, as per the latest reports from NY Post, Verizon wants a billion dollar discount on the acquisition price. Citing multiple sources the publication says that AOL chief Tim Armstrong, who runs the Verizon subsidiary that would be the umbrella company for Yahoo, is “getting cold feet” and is now asking the company to cut the price by a billion, or else he is out.

“The discount is being pushed because it feels Yahoo’s value has been diminished,” says a person with knowledge of the matter.

Armstrong is reportedly in discussions with Yahoo executives over what to do next, while they resist against any attempts to lower the price or change the terms. The deal is supposed to close early next year, merging Yahoo's advertising, content, search and mobile operations with AOL to reach some 1 billion users.