Summits Yellow

Verizon and Yahoo Agree to Lower Price of $4.48bn in Deal

Tim Maytom

The ongoing saga between US mobile network Verizon and Yahoo seems like it has finally come to a close, after the pair agreed to the amend the terms of their agreement. Under these new terms, Verizon will pay $350m (£281m) less than the $4.8bn originally agreed upon for Yahoo’s core internet business.

In addition, as reported last week, what remains of Yahoo – to be renamed Altaba – will share legal and regulatory liabilities with Verizon for the two large-scale data breaches revealed by the multinational technology company last year.

“We have always believed this acquisition makes strategic sense,” said Marni Walden, Verizon executive VP and president of product innovation and news businesses. "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."

The amended terms leave Yahoo responsible for 50 per cent of any cash liabilities incurred as a result of non-SEC government investigations, and third-party litigation, into its data breaches in 2013 and 2014. However, liabilities arising from shareholder lawsuits and SEC investigations will fall solely into Yahoo’s lap.

The deductions leave the acquisition valued at approximately $4.48bn in cash, subject to closing adjustments, and is expected to close in the second quarter of 2017.

Marissa Mayer, CEO of Yahoo, said: "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.”