Verizon snaps a $350mn discount on Yahoo deal, new price $4.48bn

Yahoo’s disclosure of two massive data breaches that affected more than a billion users finally gets stamped as Verizon knocks off $350mn of the Yahoo’s original sale price that now stands at $4.48 billion.

Interestingly, the two have also agreed to jointly bear all the future legal and regulatory liabilities. Also, going forward, any further Yahoo liability will be borne by Altaba, the newly branded holding company that will oversee the Yahoo stake in Alibaba after the sale of remaining assets to Verizon.

“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,” said Marni Walden, Verizon’s executive vice president and president of new business.

The deal is now expected to close in second quarter of 2017, the two companies have said. Marissa Mayer, CEO, Yahoo too expressed similar remarks.

“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,” Mayer added.

There’s more. The new terms have also spelled out that Yahoo will be responsible for 50 percent of any cash liability that is incurred following the closing related to non-SEC (Securities and Exchange Commission) government investigations and third-party litigation related to the breaches. Also, liabilities arising from shareholder lawsuits and SEC investigations will continue to be the responsibility of Yahoo.

But despite all this, we are sure, Yahoo must be having a sigh of relief to see the deal through after all the storms.