Wednesday February 15, 2017

Verizon Close to Yahoo Deal, Price Cut of $250-350 Million

On the heels of today's news that Yahoo still has hacking issues, it seems that Verizon wants a price reduction on their Yahoo purchase. Verizon is buying Yahoo on the strength of their messenger, email and search assets; none of which I have used in years.

I thought that the reduction would have been more than $250 million to $350 million, but what price can you place on over two decades of user's personal data? I see this deal as Verizon buying our personal data for 4.83 billion. Yahoo has gotten older and less relevant over the years as Google became a juggernaut. Maybe even a bit senile with the way they protect our data?

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Verizon hopes to combine Yahoo's search, email and messenger assets, as well as advertising technology tools, with its AOL unit, which Verizon bought in 2015 for $4.4 billion. Verizon has been looking to mobile video and advertising for new sources of revenue outside an oversaturated wireless market.

But Sunnyvale, California-based Yahoo has been under scrutiny by federal investigators and lawmakers since disclosing the largest known data breach in history in December, months after disclosing a separate hack.