Verizon Communications and Yahoo this week announced that they have amended the existing terms of their agreement for the purchase of Yahoo’s operating business.
Verizon will now pay $350 million less to acquire Yahoo. Verizon and Yahoo will alsol now share “certain legal and regulatory liabilities arising from certain data breaches incurred by Yahoo.”
“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,” Marni Walden, Verizon executive vice president and president of Product Innovation and New Businesses, said. “The amended terms of the agreement provide a fair and favorable outcome for shareholders.”
“It is an important step to unlock shareholder value for Yahoo, and we can now move forward with confidence and certainty,” Marissa Mayer, CEO of Yahoo, said. “I’m incredibly proud of our team’s strong product and financial execution in 2016, setting the stage for a successful integration.”
Yahoo will now be responsible for 50 percent of any cash liabilities incurred following the closing related to non-SEC government investigations and third-party litigation related to the breaches. Liabilities arising from shareholder lawsuits and SEC investigations will continue to be the responsibility of Yahoo.
Verizon’s acquisition of Yahoo is now valued at approximately $4.48 billion in cash and is expected to close in second-quarter 2017.