Verizon announced its intention to acquire Yahoo for $4.83 billion last year. Soon after the deal was confirmed it emerged that Yahoo had been a victim of a massive cyberattack. The company’s image suffered serious damage when reports of one attack after the other kept coming in. It was then reported that Verizon was looking for a discount on the deal and today both companies have officially confirmed the new price.
Verizon and Yahoo have signed a definitive agreement today which awards the former a $350 million discount on the acquisition price. The agreement has now been locked in which means there will be no more discussions about this.
“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, an executive vice president at Verizon.
Aside from the $350 million discount, both companies have agreed to shoulder the regulatory and legal burdens that have surfaced due to the massive hacks that Yahoo suffered in 2013 and 2014. Yahoo is even having to deal with an investigation by the U.S. Securities and Exchange Commission which is trying to figure out if the company took too long to inform investors about these attacks.
The terms indicate that Yahoo is going to foot half the bill for any non-SEC investigations and lawsuits related to the hacks. The company will also have to deal with any lawsuits filed by shareholders.