Verizon knocks $350m off Yahoo deal

Yahoo will also need to pay half of any liabilities incurred as a result of massive data breach

investment

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."

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

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."

Featured Resources

What you need to know about migrating to SAP S/4HANA

Factors to assess how and when to begin migration

Download now

Your enterprise cloud solutions guide

Infrastructure designed to meet your company's IT needs for next-generation cloud applications

Download now

Testing for compliance just became easier

How you can use technology to ensure compliance in your organisation

Download now

Best practices for implementing security awareness training

How to develop a security awareness programme that will actually change behaviour

Download now
Advertisement

Most Popular

Visit/microsoft-windows/32066/what-to-do-if-youre-still-running-windows-7
Microsoft Windows

What to do if you're still running Windows 7

14 Jan 2020
Visit/operating-systems/25802/17-windows-10-problems-and-how-to-fix-them
operating systems

17 Windows 10 problems - and how to fix them

13 Jan 2020
Visit/operating-systems/microsoft-windows/354526/memes-and-viking-funerals-the-internet-reacts-to-the
Microsoft Windows

Memes and Viking funerals: The internet reacts to the death of Windows 7

14 Jan 2020
Visit/hardware/laptops/354533/dell-xps-13-new-9300-hands-on-review-chasing-perfection
Laptops

Dell XPS 13 (New 9300) hands-on review: Chasing perfection

14 Jan 2020