The two companies also are discussing an agreement to share any future liabilities as a result of two massive data breaches Yahoo disclosed after the companies struck their original $4.8 billion deal in July, the reports said.
These two major security breaches were a major reason for the holdup. Yahoo didn't respond to an immediate request for comment.
The Securities and Exchange Commission has opened an investigation into whether Yahoo should have informed investors about the breaches sooner, according to a January report in the Wall Street Journal.
In conclusion, Yahoo spent 23 years building a solid infrastructure that gathered millions of users regardless the bad press.
The SEC is investigating the timing of Yahoo's disclosures.
Verizon is buying Yahoo's mail, search and advertising businesses to merge them with AOL, which it acquired in 2015. She's received more than $200 million from Yahoo over the past four years, despite her ineffectiveness as the company's head.
The newly reported malicious activity revolved around the use of "forged cookies" - strings of data which are used across the web and can sometimes allow people to access online accounts without re-entering their passwords.
Verizon is reportedly close to concluding its deal with Yahoo. Last month, Yahoo said the consummation of the deal would likely be delayed until April. However, since reports of Yahoo's massive data breaches made headlines, the firm has been under scrutiny from U.S. federal authorities.
It seems, though, the billion account breach revelation may have been the straw to break the proverbial camel's back - though, it appears to be a less severe break than one might expect. "Now, it only remains to see how much more of a discount Verizon may ask for". The deal will cover Yahoo's core internet business and some real estate assets.
The leaks did not affect Yahoo!'s fourth quarter earnings, with the company reporting profits of US$162 million, compared to a loss of US$4.43 billion in the corresponding quarter a year ago.