Verizon negotiates $350m discount on Yahoo purchase in wake of data breaches
Telecoms giant Verizon has negotiated a $350m discount on its agreed purchase price for Yahoo, valuing the business at $4.48bn ahead of its takeover.
The revised price follows a protracted period of negotiation coloured by Yahoo’s admission that it had suffered not one, but two, mammoth data breaches affecting an estimated 500m and 1bn users respectively.
These incidents threatened to derail the bid entirely but to ensure the deal can progress Yahoo has also agreed to attach any future liability for these breaches will be assumed by Altaba – a new holding company overseeing Yahoo’s stake in Alibaba following the sale of its other assets to Verizon.
Marni Walden, Verizon’s executive vice president and president of new business, remarked: “We have always believed this acquisition makes strategic sense. 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. The amended terms of the agreement provide a fair and favorable outcome for shareholders. It provides protections for both sides and delivers a clear path to close the transaction in the second quarter.”
With a figure agreed the two firms are expected to conclude the takeover by the second quarter of 2017.