Skip to main content

Verizon renegotiates deal to buy Yahoo to the tune of a $350 million discount

Verizon will acquire Yahoo at even bigger discount than originally reported

how yahoo is mining for gold in your junk mail campus
Global PR

Yahoo’s security breaches are costing the company more than a quarter of a billion dollars. After a previous Bloomberg report claimed that Verizon Communications had negotiated a $250 million discount on the price to acquire Yahoo as a result of the highly publicized hacks that rocked Yahoo late last year, the telecommunications company has made an official announcement about the new deal that reveals the discount is even deeper than reported.

“Under the amended terms, Verizon and Yahoo have agreed to reduce the price Verizon will pay to acquire Yahoo’s operating business by $350 million,” the company said, “In addition, Verizon and Yahoo will share certain legal and regulatory liabilities arising from certain data breaches incurred by Yahoo.”

Related Videos

While a $350 million price drop may seem like a hard pill to swallow, it’s likely better for Yahoo than having Verizon renege on the deal altogether, which briefly seemed like a possibility. Marni Walden, Verizon executive vice president and president of Product Innovation and New Businesses, assured the public of the company’s confidence in the buyout. “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.”

Walden added, “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 has already been forced to deal with a number of hurdles surrounding its imminent sale to Verizon. While the deal was initially announced in July 2016 and was set to close in the first quarter of this year, it’s since been delayed to the second quarter. This, Yahoo says, will give the company time to evaluate the effects of the data breaches and meet closing conditions.

Marissa Mayer, CEO of Yahoo, said in a statement, “We continue to be very excited to join forces with Verizon and AOL. 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.”

Verizon hopes that its new acquisition will help it move outside its traditional telecommunications role and into the mobile media and advertising world, while Yahoo simply seems eager for some relief from its many problems.

Article updated on 2-21-2017: Added news that the renegotiated price is $350 million less than originally planned. 

Editors' Recommendations

Jasper AI: how to use the ChatGPT alternative now
Jasper AI's robot mascot stands on a desk by a computer.

Jasper AI is a powerful, new alternative to ChatGPT that offers quick, generative text with no waitlist. You probably haven't heard of Jasper AI, originally known as Jarvis AI, until Marvel challenged the name that conflicted with Iron Man's AI companion.

Even with the name change, Jasper AI will still help you tackle your emails, blogs, social media posts, and more with AI information and writing assistance. If ChatGPT isn't cutting it for you, Jasper AI may be the perfect solution.
What is Jasper AI?
is a software development company founded in 2020 and based in Austin, Texas. The Y Combinator startup launched its new Jasper Chat feature on December 20, 2022, riding the wave of enthusiasm that OpenAI created with ChatGPT.

Read more
Grammarly’s new ChatGPT-like AI generator can do a lot more than proofread your writing
GrammarlyGO's Rewrite for Length feature is shown.

Grammarly, one of the biggest names in writing tools, is adding AI-generated text to its repertoire on the heels of the wild popularity of ChatGPT. Known as GrammarlyGO, this new tool is focused on improving writing rather than replacing the writer.

GrammarlyGO will roll out in beta form to existing users in April. All tiers, including developers, business, education, and premium users, will have access. You can even use GrammarlyGO with a free account.

Read more
Your Google One plan just got 2 big security updates to keep you safe online
Two Google Pixel 7 Pro smartphones.

Google just added some major new security features to keep its Google One subscribers safe while on the web. After all, the internet is where you spend a lot of your time, whether that's looking things up, paying bills, shopping, booking appointments, or sharing photos with family and friends. That’s a lot of information, and Google wants to keep subscribers safe from the darker side of the web.

Regardless of whether you use an iPhone or an Android smartphone, all Google One subscribers are getting the following two security features.
VPN by Google One for everyone

Read more