Verizon and Yahoo! Agree to Revised Deal
Verizon Communications Inc. (NYSE: VZ – $49.42) and Yahoo! Inc. said they have amended the existing terms of their July, 2016 agreement for Verizon’s purchase of Yahoo!’s operating business. Under the revised terms, the two companies 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 past data breaches incurred by Yahoo!, specifically Yahoo! will be responsible for fifty percent of any cash liabilities incurred following the closing related to non-SEC 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! The acquisition – now valued at about $4.48 billion in cash, subject to closing adjustments – is expected to close in the second-quarter of 2017.