Verizon knocks $350m off Yahoo deal
Yahoo will also need to pay half of any liabilities incurred as a result of massive data breach
Verizon has reduced the amount it's paying to buy Yahoo by $350 million after its massive data breach last year.
The company has also adjusted the terms of the agreement, saying Yahoo is responsible for 50% of any cash liabilities incurred as a result of investigations inot the breach by non-Securities and Exchange Commission government investigations or third-party litigation.
The two companies will also share legal and regulatory liabilities arising from the incident. Verizon said it hasn't been deterred from buying Yahoo, however, despite losing the data of more than a billion people.
"We have always believed this acquisition makes strategic sense," Marni Walden, Verizon executive vice president and president of product innovation and new businesses, said. "We look forward to moving ahead expeditiously so that we can quickly welcome Yahoo's tremendous talent and assets into our expanding portfolio in the digital advertising space."
She added that the amended terms of the agreement provide a "fair and favorable outcome for shareholders", with protections in place for both Verizon and Yahoo. Walden believes it will ensure the two companies can be as profitable as possible in the future.
"We continue to be very excited to join forces with Verizon and AOL," Marissa Mayer, CEO of Yahoo, added. "This transaction will accelerate Yahoo's operating business especially on mobile, while effectively separating our Asian asset equity stakes.
"It is an important step to unlock shareholder value for Yahoo, and we can now move forward with confidence and certainty. We have a terrific, loyal, experienced team at Yahoo. I'm incredibly proud of our team's strong product and financial execution in 2016, setting the stage for a successful integration."