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.”

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

Lulu Chang
Former Digital Trends Contributor
Fascinated by the effects of technology on human interaction, Lulu believes that if her parents can use your new app…
Pre-Black Friday Best Buy deal: 55% off Sony ANC headphones
sony wh 1000xm3 ch700n wireless noise canceling headphones amazon deal 768x768

We know it's tempting to hold out for Black Friday, but we've already found a killer deal on Sony's WH-CH700N wireless noise-canceling headphones that we doubt you'll be able to beat. They're just $90 at Best Buy right now -- a 55% discount off the regular price of $200 -- something we haven't seen since Amazon's Prime Day earlier this year.

The Sony WH-CH700N are a marvel. The over-the-ear design maximizes comfort for long listening sessions, something which their 35-hour battery can easily support. With built-in NFC, pairing them with an Android phone is as easy as opening the free Sony app and holding the cans next to your phone.

Read more
Amazon tablet deals: Fire HD tablets get steep discounts for Father’s Day
amazon fire hd 8 and 10 tablets get discounts fathers day

Apple’s iPad may still be at the top of the tablet game, but there’s an array of Android tablet offerings on the market from brands like Amazon, Samsung, and others. Father's Day is around the corner and if you’re especially attracted to all the accoutrements that come with Amazon’s ecosystem, the Fire HD tablet series may be a great gift option. Right now, Amazon is offering its
Fire HD 8 for just $60,
and its premium
Fire HD 10 for just $120.
Those scorching prices aren’t likely to last long, so head to Amazon and score yours now before these deals go up in smoke.

The Alexa audio assistant has evolved immensely in the four years since its release, and it stands out as a strong selling point for the entire Fire HD tablet series. With Alexa on the Fire HD 8 and Fire HD 10, you can gain quick, hands-free access to a host of information and entertainment, from songs to videos to games and more. Find the best Android apps, in the app store. Check traffic or weather reports, personal calendars, to-do lists, and more in an instant. The adaptable Alexa is also able to control compatible smart home devices like cameras, lights, and thermostats. All told, there’s not too much Alexa can’t do on the Amazon Fire HD, and she’s a big reason why they’ve become one of the industry’s top tablets.
Amazon Fire HD 8 - $60
The Amazon Fire HD 8 is one of the more powerful and affordable tablets of its size. The vibrant, 8-inch HD screen is protected by a frame which withstood over 50 durability tests from drops to spills, and more. Available in black, yellow, blue, or red, the Fire HD 8 tablet includes either 16 or 32 GB of internal storage (expandable up to 400 GB with MicroSD memory cards), and boasts up to 10 hours of mixed-use battery. Among the included Amazon bells and whistles are free, unlimited cloud storage for your Amazon content, and of course, the all-powerful Alexa audio assistant (more on that below). When it comes to content, Fire HD 8 unlocks access to over 600,000 games, social media apps, TV and movie-provider apps, and more, in addition to millions of songs through the Amazon Digital Music Store. A rear-facing camera lets you easily capture photos and videos, while Amazon’s award-winning FreeTime parental control software gives you custom controls over all of your child's content.

Read more
Samsung MicroSD memory cards get massive discounts in Amazon Memorial Day deal
samsung microsd memory cards half off on amazon 146649b7 6541 468b a9a7 311db8ba9476  cr0 0 1500 pt0 sx300

Most of us, especially those with babies and/or dogs, have felt the frustration of running out of storage space on a digital device. MicroSD memory cards are among the easiest, most affordable ways to increase the storage space in your smartphone, tablet, camera, and more, and Samsung produces some of the best in the business. Now, you can
score the Samsung 512GB microSDXC Evo Select
memory card on Amazon for a mere $100, priced down from $200.

Life’s too short to skimp on storage, so for those looking to get the most out of mobile devices, MicroSD memory cards, with their increasing abilities, are the way to go. Samsung’s Evo Select series is a top-notch MicroSDXC (extended capacity) memory card, pairing blazing read speeds with supreme reliability. The 512GB Evo Select offers a massive amount of storage space at over half a terabyte, with memory capacity for up to 24 hours of 4K UHD Video, 78 hours of full HD video, over 150,000 photos, or up to 77,000 songs. With read and write speeds of 100 MB/s and 60 MB/s respectively, you can record, play, and transfer 4K UHD videos in seconds on your smartphone, action camera, tablet, drone, or other device. To preserve your peace of mind, the Evo Select MicroSD card boasts 4-proof protection, withstanding up to 3 days underwater, temperatures ranging from -13 to 185 degrees, MRI-level magnetic fields, and more.

Read more