Back in July last year, we heard the fate of a failing Yahoo! when Verizon announced that they will buy over the technology company past its shelf life for $4.83 billion. That figure, has decreased – no small part thanks to the hack that caused a massive data leak. Twice.
The telco released a statement stating that they have amended the existing terms for the purchase agreement of Yahoo’s business, reducing the price by $350 million. On top of that, Verizon and Yahoo will both bear responsibility for any data breaches happening with Yahoo, including legal and regulatory liabilities.
As it stands, Yahoo will be responsible for 50% of any cash liabilities incurred due to the breaches – which includes non-SEC (Securities and Exchange Commission) government investigations and third-party litigation. Yahoo also hold full responsibility for any shareholder lawsuits and SEC investigations.
Also noted in the release, “under the amended terms, the data breaches or losses arising from them will not be taken into account in determining whether a “Business Material Adverse Effect” has occurred or whether certain closing conditions have been satisfied.”
Basically, Verizon is still buying Yahoo, and the breach won’t be a deal breaker.
Verizon’s acquisition of Yahoo is now valued at roughly $4.48 billion in cash. The deal is expected to close in second-quarter 2017.
Marni Walden, Verizon executive vice president and president of Product Innovation and New Businesses, said: “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.”
Marissa Mayer, CEO of Yahoo, said: “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.”
