Business in Tech

Verizon To Now Buy Yahoo For $350m Less The Original Value After The Breaches

After multiple breaches at Yahoo, it was reported that Verizon wanted a $1b discount in its $4.8b offer for Yahoo. Following that, reports had it that both parties agreed on a $250m discount but Verizon just announced that the figure is now $350m.

 

Verizon says both parties have agreed to share the responsibility from the fallout of the breaches that may have further reduced the overall value the internet company which was once worth $128b. Damages from lawsuits by shareholders or a probe by the Securitas and Exchange Commission (SEC) may further devalue the company and hence the announcement.

 

Verizon will therefore pay 50 percent of charges from government investigations and with today’s announcement, Verizon will now pay $4.48b for Yahoo and the deal should be completed in the second quarter of this year.

 

Yahoo was accused of not promptly disclosing the extent of the breaches to Verizon which had made a bid for it but that has now been settled with the announcement today.