LONDON (ShareCast) - (ShareCast News) - Telecoms company Verizon has reportedly sought a billion-dollar discount on its initial bid of $4.8bn in light of Yahoo's recent hacking scandal, according to The Guardian.
Last week reports surfaced of half a billion of Yahoo's customers getting hacked as well as being secretly monitored by US authorities. The telecoms company is reportedly showing signs of withdrawing from the deal altogether.

The bad news for Yahoo comes as it prepares to release its final results after the US markets close on Tuesday. Research firm eMarketer is expecting a double-digit decline in ad revenue.

"With email at the core of Yahoo's user base, we do expect recent privacy concerns to have at least some material effect on Yahoo's display business in the future," said Martín Utreras, forecasting analyst at eMarketer .

Chief executive Marissa Mayer cancelled the usual results call with analysts on Friday. The firm will release filings with the securities and exchange commission (SEC) and a press statement but will not take questions "due to the pending transaction with Verizon".

According to Reuters, Yahoo's contract with Verizon includes a clause that allows Verizon to withdraw if a new event "reasonably can be expected to have a material adverse effect on the business, assets, properties, results of operation or financial condition of the business".

Verizon's general counsel told reporters last week: "I think we have a reasonable basis to believe right now that the impact is material and we're looking to Yahoo to demonstrate to us the full impact. If they believe that it's not, then they'll need to show us that."

The share price of Yahoo went up by 1.53% to 42.41c at 1553 EDT.

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