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.

Advertisement - Article continues below

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.

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

"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

Preparing for long-term remote working after COVID-19

Learn how to safely and securely enable your remote workforce

Download now

Cloud vs on-premise storage: What’s right for you?

Key considerations driving document storage decisions for businesses

Download now

Staying ahead of the game in the world of data

Create successful marketing campaigns by understanding your customers better

Download now

Transforming productivity

Solutions that facilitate work at full speed

Download now
Advertisement

Recommended

Visit/security/ethical-hacking/356252/poorly-secured-banking-apps-lead-to-cyber-threats
ethical hacking

Mobile banking apps are exposing user data to attackers

26 Jun 2020
Visit/security/malware/356231/most-malware-came-through-https-connections-in-q1-2020
malware

Most malware came through HTTPS connections in Q1 2020

25 Jun 2020
Visit/security/phishing/356211/phishing-attacks-target-unsuspecting-wells-fargo-customers
phishing

Phishing attacks target unsuspecting Wells Fargo customers

24 Jun 2020
Visit/security/hacking/356210/trump-administration-wants-to-enhance-the-security-of-gov-sites
hacking

Trump administration wants to enhance the security of .gov sites

24 Jun 2020

Most Popular

Visit/business/business-operations/356395/nvidia-overtakes-intel-as-most-valuable-us-chipmaker
Business operations

Nvidia overtakes Intel as most valuable US chipmaker

9 Jul 2020
Visit/laptops/29190/how-to-find-ram-speed-size-and-type
Laptops

How to find RAM speed, size and type

24 Jun 2020
Visit/mobile/google-android/356373/over-2-dozen-additional-android-apps-found-stealing-user-data
Google Android

Over two dozen Android apps found stealing user data

7 Jul 2020