Verizon has confirmed it has amended the terms of its agreement to buy Yahoo, with the final deal valued at $4.48bn in cash.
Verizon and Yahoo have agreed to reduce the price by $350m and share legal and regulatory liabilities caused by data breaches experienced by Yahoo. The deal – first agreed in July – is expected to close in the second quarter on 2017.
“We have always believed this acquisition makes strategic sense,” said Verizon executive vice president and president of product innovation and new businesses Marni Walden. “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 continued that the amended terms of the agreement provide a fair and favourable outcome for shareholders, saying it “provides protections for both sides and delivers a clear path to close the transaction in the second quarter”.
Yahoo chief executive Marissa Mayer added: “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.”
The deal will mean that Yahoo is responsible for 50% of any cash liabilities incurred from the closing related to non-Securities and Exchange Commission (SEC) government investigations and third-party litigation related to the breaches, while liabilities from shareholder lawsuits and SEC investigations will continue to be the responsibility of Yahoo.
Also under the new terms, the data breaches or losses arising from them will not be taken into account in determining whether a “Business Material Adverse Effect” has happened.
In July, 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 one billion users, including over 600 million mobile users, creating one of the largest portfolios of owned and partnered global brands.