Verizon scrapes $350 million off deal to buy Yahoo
From CNET: The telecommunications giant and internet pioneer Yahoo have signed an agreement that drops the original $4.83 billion acquisition price for Yahoo by $350 million, the companies said Tuesday. This comes months after Yahoo's public image tumbled downhill with one hacking scandal after another.
In the seven months since Verizon announced it would buy Yahoo's operating business, Yahoo has revealed that it suffered the worst hack in history -- twice. Yahoo first set the record in September with 500 million accounts breached. It then broke its own record in December with the revelation that 1 billion accounts were hacked in a separate breach. The company has also faced backlash for reportedly building tools that help the government spy on citizen emails.
The $4.83 billion deal had been on shaky ground since the massive breaches, but Verizon apparently has not lost faith in Yahoo's 1 billion active users.
"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," Marni Walden, Verizon's executive vice president, said in a statement.
As part of the price drop, Verizon and Yahoo have agreed to share the legal and regulatory burdens that will come from the hacks the website suffered in 2013 and 2014. Yahoo is reportedly under investigation by the US Securities and Exchange Commission for potentially taking too long to inform investors about the breaches.
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