Yahoo has agreed to a massive $350 million discount on its sale to Verizon following revelations of new data breaches at the former internet search giant, the latter company announced.
Verizon Executive VP Marni Walden wrote, “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.”
Future liabilities would be split between the companies, according to a press release. This will reduce the sale price from an enormous sum of $4.83 billion. It’s unclear how Yahoo, as a subsidiary of Verizon, would split liability with its future parent company.
“The amended terms of the agreement provide a fair and favorable outcome for shareholders,” Walden added. “It provides protections for both sides and delivers a clear path to close the transaction in the second quarter.”
Yahoo stock nosedived in December when the breaches were first reported. Bloomberg then reported that Verizon might try to scuttle the deal if they didn’t get a revision of the standing agreement. The then Obama White House said the FBI would investigate the hack.
Outgoing Yahoo CEO Marissa Meyer was quoted as upbeat in Verizon’s statement.
“We continue to be very excited to join forces with Verizon and AOL. 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.”
Once the deal is finalized, Yahoo will be renamed “Altaba,” both an allusion to being an ‘alternative Alibaba’ and the 15-percent stake Yahoo currently has in the Chinese e-commerce giant.