Yahoo salvages Verizon deal by giving Verizon a $350-million discount

Yahoo is taking a $350-million hit on its previously announced $4.8-billion sale to Verizon Communications in a concession for security lapses that exposed personal information stored in more than 1 billion Yahoo user accounts. The revised agreement announced Feb 21 eases investor worries that Verizon would demand a discount of at least $1 billion or cancel the deal entirely. The hacking bombshells, disclosed after the two companies agreed on a sale, represent the two biggest security breaches in Internet history. The security breaches raised concerns that people might decrease their usage of Yahoo email and other digital services that Verizon is buying. A smaller audience makes Yahoo's services less valuable because it reduces the opportunities to show ads — the main reason that Verizon struck the deal seven months ago.