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Yahoo rallies on report that revised Verizon deal is close

Yahoo! President and CEO Marissa Mayer.
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Yahoo! President and CEO Marissa Mayer.

Yahoo shares rose Wednesday morning after it was said to have reached a revised deal to be acquired by Verizon.

Yahoo's stock was up nearly 1.6 percent at midmorning.

Verizon is close to announcing a revised takeover deal with Yahoo that will cut the price slightly, sources told CNBC. The price was said to be reduced by a few hundred million dollars.

Bloomberg, which first reported news of the revised deal, said the price could be cut by about $300 million.

CNBC has reached out to Yahoo for comment. Verizon declined to comment.

Verizon agreed to buy Yahoo for $4.8 billion in July, but since then it has disclosed two hackings of unprecedented scale. In December, analysts told CNBC that Verizon might use the new breaches to reduce the price of the Yahoo acquisition.

When Yahoo reported earnings in January, CEO Marissa Mayer said that the company's commitment to the security of its users was "unwavering," and that integration planning was a top priority. Buying Yahoo will give Verizon scale for its internet advertising business, which already includes AOL.

— Reporting by CNBC's David Faber.