Bloomberg said that Verizon and Yahoo have a reached a tentative agreement that called for a lowering of the purchase price of core Yahoo from $4.8 billion to about $4.55 billion.
The deal will include core Yahoo, including Yahoo finance, Yahoo email, Yahoo media and all of its digital media and advertising platforms/properties.
What will be leftover will be cash, intellectual property, some real estate and Yahoo's crown jewels: its investments in Alibaba and Yahoo Japan.
As I have stated on prior occasions, Verizon has been hot to go on the deal (probably more so now that the Time Warner and AT&T deal is nearing closure of some sort soon), and a mere $250 million discount on the deal is small change for the almost 1.5 billion accounts that had been breached and not disclosed by Yahoo until late last year.
Yahoo shareholders should take the deal and run as fast as they can to the bank.
Of course, hanging on once the deal is complete is hoping that the value of Yahoo's investments in Yahoo Japan and Alibaba continue to increase going forward.
Yahoo's 15% or so stake in Alibaba is worth roughly $38 billion, and its roughly 36% stake in Yahoo Japan is worth about $9.3 billion.
Yahoo's market capitalization as of this writing was $43.7 billion.
Shares of Yahoo are up just under 2% on the news to $45.81 per share while shares of Verizon are down 0.71% at $47.92 per share.
(Long baba, long calls)
