Verizon lops off $456 million from Yahoo price

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Verizon lops off $456 million from Yahoo price

Will share some liabilities stemming from hacks and data breaches.

Verizon has amended its purchase price for internet portal Yahoo's core business to US$4.48 billion (A$5.84 billion), lowering its original offer by A$456 million in the wake of massive data breaches at the latter company.

The closing of the deal, which was first announced in July last year, had been delayed as the companies assessed the fallout from massive data breaches that Yahoo disclosed in 2016.

As part of the revised deal, Yahoo and Verizon will share some regulatory and financial liabilities arising from the hacks.

Under the amended terms, Yahoo and Verizon will split cash liabilities related to some government investigations and third-party litigation related to the breaches.

Yahoo, however, will continue to be responsible for liabilities from shareholder lawsuits and any Securities and Exchange Commission investigations.

The deal brings Verizon Yahoo's more than one billion users and a wealth of data it can use to offer more targeted advertising.

Verizon will combine Yahoo's advertising technology tools as well as its search, email and messenger assets with its AOL unit, purchased for US$4.4 billion (A$5.73 billion) in 2015.

Verizon and Yahoo said they expect the deal to close in the second quarter.

 

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