Verizon, Yahoo Agree to Lower Deal Price, Shared Liability From Breaches

Verizon will buy Yahoo's operating business for $350 million less than Verizon's initial $4.83 billion offer and the companies "will share certain legal and regulatory liabilities arising" from the 2013 and 2014 data breaches that compromised a combined 1.5 billion Yahoo user accounts (see 1612150010), they said in a Tuesday statement. Under the amended deal, which is expected to close Q2, Yahoo will be responsible for 50 percent of cash liabilities incurred after non-SEC government investigations and third-party lawsuits related to the breaches are closed, the companies said. At least two dozen lawsuits have been filed against Yahoo after the company announced the breaches last year (see 1612230029) and lawmakers also are seeking answers (see 1702150070 and 1702100059). Yahoo would continue to be responsible for liabilities from shareholder suits and SEC probes, the news release said. The companies also agreed that the data breaches or any losses from them "will not be taken into account in determining whether a 'Business Material Adverse Effect' has occurred or whether certain closing conditions have been satisfied." Verizon Executive Vice President Marni Walden said the amended terms are "fair and favorable" for shareholders and the deal still makes "strategic sense." The company is seeking to increase its advertising business (see 1607250016). Yahoo CEO Marissa Mayer said the deal will "accelerate" the company's mobile operating business and separate its "Asian asset equity stakes."