If you thought the $4.8 billion price tag for Yahoo was low, wait til you learn what Verizon wants to pay now. The communications company is seeking a $1 billion discount on its planned purchase of tech conglomerate Yahoo, according to the New York Post.
The move follows insult-to-injury revelations that millions of Yahoo account credentials had been hacked and, as Reuters reported this week, that a Foreign Intelligence Surveillance (FISA) court had ordered the company to scan emails.
If Verizon has its way, that comes out to $3.8 billion for a company once valued at $125 billion.
"In the last day we've heard that [AOL CEO] Tim [Armstong] is getting cold feet. He's pretty upset about the lack of disclosure and he's saying, can we get out of this or can we reduce the price?" a source close to Verizon told the Post. Verizon owns AOL.
Former Yahoo CEO Ross Levinsohn told CNBC earlier this week he believed it likely Yahoo had known both about the hack and the surveillance, but had not told Verizon.
"If I were [Verizon], just from a business standpoint, I'd probably reserve a bunch of money against the deal or go back to Yahoo and ask for a discount," he said.
While SunTrust Robinson Humphrey analysts have not addressed the impact of the surveillance issue on Yahoo's price in any recent reports, the firm did consider whether the hack might have an impact on Yahoo's value to Verizon.
A Sept. 22 note on Yahoo from the analyst firm states that Verizon had been notified of the hack only two days prior, and at the time was "currently evaluating the impact and could very well accept this as a cost of being on business."
The note adds that the sale agreement between Yahoo and Verizon "does not discuss price adjustments upon change in business outlook."