Telecom operator Verizon Communications said it will slash the size of the cash deal to acquire digital content company Yahoo by $350 million.
Verizon’s acquisition of Yahoo will now be valued at approximately $4.48 billion in cash. The deal is expected to close in the second quarter of 2017.
On July 23, 2016, Verizon and Yahoo entered into a stock purchase agreement under which Verizon would acquire Yahoo’s operating business and global audience of more than 1 billion users, including more than 600 million mobile users.
Verizon decided to pursue a revised deal in the wake of security breaches that impacted the customer base of Yahoo.
“We have always believed this acquisition makes strategic sense. We look forward to moving ahead so that we can quickly welcome Yahoo’s tremendous talent and assets into our expanding portfolio in the digital advertising space,” said Marni Walden, Verizon executive vice president and president of Product Innovation and New Businesses.
Verizon and Yahoo will also share certain legal and regulatory liabilities arising from certain data breaches incurred by Yahoo.
Yahoo said it will be responsible for 50 percent of any cash liabilities incurred following the closing related to non-SEC government investigations and third-party litigation related to the data breaches. Yahoo will also be responsible for liabilities arising from shareholder lawsuits and SEC investigations.
Adding Yahoo to Verizon and AOL will enhance Verizon’s growth strategy of providing a cross-screen connection for consumers, creators and advertisers.
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