It was a tough year for Yahoo. Last year, people found out about two massive data breaches at the company. These disclosures caused some serious damages at Yahoo and to the transaction that the company will close with Verizon.
These days, Verizon confirmed that there will be new terms for the purchase of Yahoo. It seems that the company will pay 350 million dollars less for Yahoo.
So, Yahoo now costs approximately 4.48 billion dollars, a price that Verizon will pay. Moreover, these two companies declared that they had agreed to share legal and regulatory liabilities after two massive data breaches which occurred at Yahoo.
As we know, there were two huge data breaches: one with approximately 500 million accounts affected, which was unveiled in September 2016, and another revealed in December 2016, which affected 1 billion accounts.
TechChrunch confirmed that any Yahoo liability going forward will be assumed by Altaba. This is the newly branded holding company that will oversee Yahoo’s stake in Alibaba, after the company will be sold entirely to Verizon. Rumors are claiming that the deal is expected to close in Q2 2017. As we know, Verizon also owns AOL, which owns TechChrunch.
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,” has declared Verizon’s executive vice president and president of new business, Marni Walden, in a statement.
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.”
Yahoo’s CEO, Marissa Mayer, declared that this will help move the deal along. As we know, the first announcement that Verizon will buy Yahoo was made in July 2016.
“We continue to be very excited to join forces with Verizon and AOL,” Marissa Mayer declared in a statement. “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.”
Another important thing to mention is that Yahoo agreed to be “responsible for 50 percent of any cash liabilities incurred following the closing related to non-SEC (Securities and Exchange Commission) government investigations and third-party litigation related to the breaches.
Liabilities arising from shareholder lawsuits and SEC investigations will continue to be the responsibility of Yahoo.”
Verizon is buying Yahoo because it has approximately 1 billion users, plus 600 million mobile users. This will definitely help Verizon to expand its own ambitions to build out a wider internet-based business to sell advertising.
Adding Yahoo to Verizon and AOL will create one of the largest portfolios of owned and partnered global brands, with extensive technology-powered distribution capabilities. It will enhance Verizon’s growth strategy of providing a cross-screen connection for consumers, creators and advertisers,” the company declared.