After the disclosure of two massive data breaches last year, today Yahoo and Verizon finally confirmed new terms for the sale of Yahoo to Verizon: Verizon..
After the disclosure of two massive data breaches last year, today Yahoo and Verizon finally confirmed new terms for the sale of Yahoo to Verizon: Verizon will pay $350 million less than originally planned, working out to a price of $4.48 billion to acquire Yahoo.
The two have also agreed to share legal and regulatory liabilities after two massive data breaches at Yahoo, one estimated to cover around 500 million accounts revealed in September 2016 , and another disclosed in December 2016 affecting over 1 billion accounts. TechCrunch has also confirmed that any further Yahoo liability going forward will be assumed by Altaba, the newly branded holding company that will oversee the Yahoo stake in Alibaba after the sale of the rest of the assets to Verizon.
The deal is now expected to close in Q2 2016, the two companies said. Verizon also owns AOL, which owns TechCrunch.
“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,” said Marni Walden , Verizon’s executive vice president and president of new business, said in a statement. “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.”
Marissa Mayer, Yahoo’s CEO, also noted that this will help move the deal along, after it was first announced in July of last year .
“ We continue to be very excited to join forces with Verizon and AOL,” she said in a statement. “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.
