Breakingviews: Verizon poor dealmaking turning it into home for charity cases

Jennifer Saba
Verizon chairman and CEO Lowell C. McAdam
David Paul Morris | Bloomberg | Getty Images

Yahoo Chief Executive Marissa Mayer and her board know how to play a bad hand. The beleaguered internet company faced demands from Verizon to cut by a fifth the $4.8 billion it had offered for Yahoo's core businesses. Instead, the telecom firm accepted a much lower concession.

The trouble started in the fall after Yahoo disclosed two huge security breaches that occurred in 2013 and 2014. That appeared to give $200 billion Verizon a case of buyer's remorse. They had just, in July, agreed to buy Yahoo's advertising and search businesses; now executives pondered if they should get out of the deal altogether, worried that the hacks may have left the value of two divisions seriously impaired.

More In Pro News and Analysis

CNBC ProStocks that investors hate like GameStop and Bed Bath & Beyond are booming in 2021
CNBC ProWall Street analysts are bullish on these under-the-radar stocks with breakout potential for 2021
CNBC ProMike Santoli’s market notes: Small caps hit, supply of stocks grows, 'trading sardines'