Verizon cuts Yahoo takeover price by $350 millionStaff Writer | February 21, 2017
Verizon Communications and Yahoo amended the existing terms of their agreement for the purchase of Yahoo's operating business.
Acquisition Verizon and Yahoo will share certain liabilities
In addition, Verizon and Yahoo will share certain legal and regulatory liabilities arising from certain data breaches incurred by Yahoo.
Under the amended terms, Yahoo will be responsible for 50 percent of any cash liabilities incurred following the closing related to non-SEC (Securities and Exchange Commission) government investigations and third-party litigation related to the breaches.
Liabilities arising from shareholder lawsuits and SEC investigations will continue to be the responsibility of Yahoo.
Also under the amended terms, the data breaches or losses arising 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's acquisition of Yahoo – now valued at approximately $4.48 billion in cash, subject to closing adjustments – is expected to close in second-quarter 2017.
On July 23, 2016, Verizon and Yahoo entered into a definitive stock purchase agreement under which Verizon would acquire Yahoo's operating business and global audience of more than 1 billion users, including more than 600 million mobile users. ■