[BreachExchange] Yahoo and Verizon Confirm $350M Deal Cut, Data Breach Liabilities to Be Split

[Audrey McNeil]

http://news.softpedia.com/news/yahoo-and-verizon-confirm-350m-deal-cut-data-
breach-liabilities-to-be-split-513150.shtml

Yahoo and Verizon confirm the original deal between the two companies has
suffered a $350 million price cut, putting the final valuation of Yahoo at
$4.48 billion in cash.

"Under the amended terms, Verizon and Yahoo have agreed to reduce the price
Verizon will pay to acquire Yahoo's operating business by $350 million. In
addition, Verizon and Yahoo will share certain legal and regulatory
liabilities arising from certain data breaches incurred by Yahoo," the
announcement reads.

News about the new deal changes leaked last week, but the two companies did
not confirm the terms until now. In the past several months, there have
been numerous speculations about the impact the two largest data breaches
in history, revealed by Yahoo last September and December, would have on
the deal between the two companies. It was expected that the terms would
suffer some changes, including a price tag cut, something that has finally
been confirmed.

"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. 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," said Marissa Mayer, Yahoo CEO.

50/50 on data breach liabilities, aside from any coming from SEC

Following the amended terms, Yahoo will be responsible for 50% of any cash
liabilities incurred following the closing related to non-SEC government
investigations, as well as third-party litigation related to the breaches.
However, any liabilities arising from shareholders and SEC investigation
will continue to be Yahoo's responsibility. Given that Yahoo is currently
under SEC investigation for taking too long to notify shareholders of the
data breaches, it seems like Verizon simply doesn't want any of that mud on
its hands.

Yahoo agreed to sell its operative business and a global audience of more
than 1 billion users, as well as 600 million mobile users, to Verizon.
After the deal is closed sometime in the second quarter, Yahoo will become
Altaba, which will continue to hold 15% in the Chinese e-commerce giant
Alibaba and the 35.5% stake in Yahoo Japan.
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