Verizon knocks off US$350M from Yahoo deal after breaches

Yahoo will also share in some potential liabilities related to two massive data breaches

Verizon Communications will pay US$350 million less for Yahoo after two major data breaches reported by the struggling internet pioneer.

Verizon will pay about $4.48 billion for Yahoo's operating business, and the two companies will share any potential legal and regulatory liabilities arising from two major data breaches announced in late 2016.

The companies announced the amended terms of the deal Tuesday.

Back in October, one news report had Verizon seeking a $1 billion discount after the first breach was announced.

The new terms "provide a fair and favorable outcome for shareholders," Marni Walden, Verizon's executive vice president and president of Product Innovation and New Businesses, said in a press release.

The deal still makes sense, however, Walden added. The deal brings "Yahoo's tremendous talent and assets into our expanding portfolio in the digital advertising space," she said.

Yahoo continues to deal with the fallout from the two breaches, one affecting 500 million user accounts and the second affecting 1 billion.

Just last week, Yahoo sent out warning letters to users saying their accounts may have been compromised through a forged cookie scheme apparently related to the 500 million account breach announced last September.

Verizon first announced plans to buy most of Yahoo's assets for $4.8 billion last July. Under the new terms, Yahoo will be responsible for half of any liabilities related to the breach from third-party lawsuits and from government investigations, outside of the U.S. Securities and Exchange Commission.

Those potential liabilities were not addressed in the original acquisition announcement, which happened before the breaches were reported.

Liabilities arising from shareholder lawsuits and SEC investigations will continue to be Yahoo's responsibility.

The companies expect the deal to close in the second quarter.

Join the PC World newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Grant Gross

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?