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Verizon and Yahoo agree $350m price cut | Verizon and Yahoo agree $350m price cut |
(35 minutes later) | |
US telecoms giant Verizon has reached a deal with Yahoo to buy the company's core internet business for $350m (£281m) less than originally agreed. | US telecoms giant Verizon has reached a deal with Yahoo to buy the company's core internet business for $350m (£281m) less than originally agreed. |
Doubts had been cast over the original deal after it emerged that Yahoo had been hit by two huge cyber attacks. | Doubts had been cast over the original deal after it emerged that Yahoo had been hit by two huge cyber attacks. |
Following the price cut, Verizon said it was now buying the Yahoo business for about $4.48bn. | Following the price cut, Verizon said it was now buying the Yahoo business for about $4.48bn. |
Under the new deal Yahoo and Verizon will split the cost of some lawsuits arising from the data breaches. | Under the new deal Yahoo and Verizon will split the cost of some lawsuits arising from the data breaches. |
Verizon wants to combine Yahoo's search, email and messenger assets, as well as its advertising technology tools, with its AOL unit. Verizon bought AOL in 2015 for $4.4bn. | Verizon wants to combine Yahoo's search, email and messenger assets, as well as its advertising technology tools, with its AOL unit. Verizon bought AOL in 2015 for $4.4bn. |
Verizon sees mobile video and advertising as new sources of revenue outside an overcrowded US telecoms market. | Verizon sees mobile video and advertising as new sources of revenue outside an overcrowded US telecoms market. |
Yahoo admitted in December 2016 it had been hit by a large cyber attack in 2013 which affected more than a billion customer accounts. | Yahoo admitted in December 2016 it had been hit by a large cyber attack in 2013 which affected more than a billion customer accounts. |
It had already admitted another breach in 2014 that had affected about half a billion users. | It had already admitted another breach in 2014 that had affected about half a billion users. |
'Fair and favourable' | |
Under the amended deal Yahoo and Verizon will each be responsible for 50% of any liabilities arising from government investigations and third party litigation related to the data breaches. | |
Yahoo will still be solely responsible for any liabilities arising from shareholder lawsuits and Securities and Exchange Commission investigations. | |
Marni Walden, Verizon executive vice president said: "The amended terms of the agreement provide a fair and favourable outcome for shareholders. It provides protections for both sides and delivers a clear path to close the transaction in the second quarter." | |
The deal does not give Verizon any part of Yahoo's stake in Chinese online retailer Alibaba. | The deal does not give Verizon any part of Yahoo's stake in Chinese online retailer Alibaba. |
The price tag for the takeover is well below the $44bn Microsoft offered for Yahoo in 2008, or the $125bn it was worth during the dotcom boom. | The price tag for the takeover is well below the $44bn Microsoft offered for Yahoo in 2008, or the $125bn it was worth during the dotcom boom. |
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