Verizon has shaved $350 million off its original offer price for Yahoo following two successive cyberattacks at the internet company which compromised the account information of billions of users. The tie-up between the pair had been in works since July but has been heavily delayed as Verizon, the number one wireless carrier in the United States, sought to amend the terms of the deal given Yahoo’s high-profile security failures.
Liabilities
Under the terms of the new deal, the pair have agreed to share legal and regulatory liabilities going forward. On Yahoo’s side, any further liabilities will be assumed by Altaba – a newly-branded holding company that will oversee the Yahoo stake in Alibaba going forward while the remainder of the company’s operating assets are picked up by Verizon.
A ‘fair and favourable’ outcome for shareholders
Verizon executive vice president and president of new business Marni Walden commented: ‘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.’ She added: ‘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.’
Sources: Reuters; Tech Crunch
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