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.