Verizon finalised a deal to buy Yahoo’s core internet business for $350 million less than the original price of $4.83 billion, as a result of security breaches.
The two parties will share legal and regulatory liabilities arising from the data breaches incurred by the internet company.
Marni Walden, Verizon EVP and president of product innovation and new businesses, said the amended terms provide “a fair and favourable outcome for shareholders” as well as “protections for both sides” while delivering “a clear path to close the transaction in the second quarter.”
“We always believed this acquisition makes strategic sense,” she added.
Under the new terms, Yahoo will be responsible for 50 per cent of any cash liabilities incurred related to non-Securities and Exchange Commission (SEC) government investigations and third-party litigation related to the breaches once the deal is closed.
Liabilities arising from shareholder lawsuits and SEC investigations will continue to be Yahoo’s responsibility.
Verizon’s acquisition of Yahoo is now valued at approximately $4.48 billion in cash and is expected to close in Q2 2017.
The US operator made a move to acquire the ailing internet giant’s operating business in July 2016 to boost its position as “a top global mobile media company”.
However, the deal was jeopardised by revelations Yahoo suffered two major data hacks: one in 2014 impacting 500 million user accounts, and one in 2013 affecting more than one billion user accounts. The latter is the largest known data breach in history and Yahoo faced scrutiny by federal investigators and lawmakers ever since.