Verizon, Yahoo Cut Merger Price by $350 Million

Verizon will acquire Yahoo’s Internet properties at a $350 million discount after revelations of security breaches at the web company, according to Bloomberg. The acquisition, now valued at $4.48 billion in cash, is expected to close in the second quarter, the companies said in a statement.

In addition to the price cut, Verizon and the entity that remains of Yahoo after the deal, to be renamed Altaba, will share any ongoing legal responsibilities related to the breaches. The move brings Verizon another step closer to adding Yahoo and its billion users as it tries to expand beyond a maturing wireless and landline business into mobile media and advertising ventures. The company is also exploring other acquisitions at a time when regulations are loosening and broader M&A strategies are taking hold under a deal-friendly President Donald Trump.

The revised terms provide a “fair and favorable outcome“ for shareholders, said Marni Walden, Verizon’s executive vice president and president of product innovation and new businesses. “It provides protections for both sides and delivers a clear path to close the transaction in the second quarter,“ she said. The $350 million discount was earlier reported by the Wall Street Journal.