Skip to main content
  1. Home
  2. Business
  3. News

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

By
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

Topics
Lulu Chang
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
Intuit QuickBooks summer savings have us excited for bookkeeping and more
Intuit QuickBooks Online and Payroll Indepence Day deals used by business owner

Being honest, accounting, bookkeeping, and various administrative tasks aren't exactly what most people would call exciting, even if they own a business. It's something you have to do, but not that you necessarily want to do. But you absolutely have to stay on top of it; otherwise, things could get out of hand later, like when you're filing taxes or trying to calculate expenses. As a leader in small business fintech, Intuit QuickBooks is helping over 7 million customers worldwide do precisely that. From a startup to scaling up, the Intuit QuickBooks ecosystem delivers products and services that are a core component of small business growth. Accounting, payroll, payments, capital, and even marketing assistance via Mailchimp are just a few examples of what you can expect from a QuickBooks subscription. Thanks to its current Summer Sale, you can save a never-before-seen 70% off Intuit QuickBooks plans. That offer and these prices excite us for something that, typically, wouldn't be considered exciting.

 
These Intuit QuickBooks Summer Savings are unprecedented
This is the first time we've ever seen prices this low, and it may actually be the only time it happens. Time will tell, but the point is that you can save big on QuickBooks plans that you need for your business. The deal offers 70% off QuickBooks Online for your first three months. With Simple Start -- the base plan -- you get your first three months for just $9 per month instead of $30. That saves you $21 monthly for $63 across your initial three months of service. By comparison, the Essentials tier is only $18 per month instead of $60, and the Plus tier is only $27 per month instead of $90. If you want to splurge and go with Advanced, it's only $60 monthly for your first three months instead of $20h. Those are some incredible savings.

Read more
Grammarly should be your next AI writing partner for all things text
Grammarly-featured-image-with-creative

Not everyone is a writer, and that's okay. However, we do a lot of writing throughout our lives, from essays and school papers to dissertations, work reports, letters, emails, and beyond. Even with the advent of digital platforms, there's still a lot of writing to be done. But some tools can help significantly, like Grammarly.

Despite what the name espouses, Grammarly helps you with a whole lot more than just basic writing structure and grammar. That's thanks to an integrated AI writing assistant that can enhance your writing skills and improve the quality of the content you create. You'll get real-time suggestions about grammar, spelling errors, punctuation, and style. Ultimately, that leads to better writing from you with the complete confidence and clarity of a skilled artisan. Let's take a closer look at what Grammarly has to offer, well, everyone.

Read more