Verizon has negotiated down the price for Yahoo to $4.48 billion following two large-scale breaches on Yahoo’s network that surfaced after the original acquisition deal was signed, the companies confirmed Tuesday.
Following reports last week suggesting that Verizon was seeking a discount for its $4.83 billion purchase of Yahoo, the two companies on Tuesday confirmed that each has agreed to a $350 million price cut, shaving the value of the deal to $4.48 billion.
The renegotiated deal comes in the wake of the two massive security breaches on Yahoo’s network that came to light after Verizon agreed to buy the ailing Internet giant’s assets. The two hacks, which took place in 2013 and 2014, impacted more than 1.5 billion user accounts combined, with the 2013 attack being called the largest hack to date, according to security analysts.
Under the terms of the amended deal, Verizon and Yahoo will split cash liabilities related to government investigations related to the breaches. Liabilities arising from shareholder lawsuits and investigations by the Securities and Exchange Commission (SEC) will continue to be the responsibility of Yahoo, the companies said.
[Related: Report: Verizon Renegotiating Yahoo Deal, Seeks $250M Discount ]
Sunnyvale, Calif.-based Yahoo confirmed the 2014 cyberattack that impacted more than 500 million users in September, while the 2013 attack that compromised more than 1 billion user accounts was confirmed in December.
