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Published: Wed, February 22, 2017
Economy | By Melissa Porter

After Breach, Verizon Drops Yahoo Purchase Price by $350M


Verizon has made it official - the company today revealed that it has mutually agreed to lower its purchase price of Yahoo by $350 million, bringing the total value of the deal down to $4.48 billion in cash.

"We have always believed this acquisition makes strategic sense", said Verizon executive vice president Marni Walden. The new purchase price is Dollars 4.48 billion.

The No. 1 USA wireless carrier had been trying to persuade Yahoo to amend the terms of the agreement following the attacks. The companies announced the amended terms of the deal Tuesday.

Marissa Mayer, CEO of Yahoo, who announced in January that she will step down if Verizon completes the takeover, added: "We continue to be very excited to join forces with Verizon and AOL". Yahoo will pay costs arising from shareholder lawsuits and SEC probes.

In their letter, the senators hammered Yahoo for being "unable to provide answers to many basic questions about the reported breaches" and asked Mayer to clarify several points regarding the breaches and Yahoo's timeline for notifying customers.

It will essentially be a holding company for its investments in Chinese e-commerce giant Alibaba and Yahoo Japan that are together worth around $40bn (£32.2bn). This refers to specific legal language in the deal that says Verizon can withdraw if an event occurs which "reasonably can be expected to have a material adverse effect on the business, assets, properties, results of operation or financial condition of the business". A whopping sum of $350 million has been shaved off the initial fee agreed between both companies-and no thanks to two recent attacks on Yahoo data. But Verizon didn't seek a bigger discount because its internal investigation showed that only a "minimal" number of Yahoo's monthly active users abandoned the company after it disclosed the data breaches, according to multiple people familiar with the matter.

If you remember, Yahoo and Verizon had agreed upon a price nearer to $5 Billion, last year. Yahoo is still on the hook for shareholder lawsuits and SEC investigations. Upon successfully acquiring Yahoo's internet business, it would be able to expand its mobile media and advertising markets and take advantage of the large user base connected to the Yahoo platform.

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