Yahoo and Verizon have finally agreed new terms in a deal which will see $350 million (£281m) cut from the original asking price for the internet pioneer.
Verizon, which bought AOL in 2015 for $4.4 billion, will now pay a similar amount – $4.48 billion – for Yahoo.
It will also “share certain legal and regulatory liabilities” stemming from the two massive data breaches disclosed by Yahoo last year which compromised an estimated 1.5 billion accounts.
Specifically, Verizon will pay half of any liabilities related to “non-SEC government investigations and third-party litigation” but Yahoo will have to foot the entire bill for shareholder lawsuits and SEC investigations.
“We have always believed this acquisition makes strategic sense. 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,” said Marni Walden, Verizon president of product innovation and new businesses.
“The amended terms of the agreement provide a fair and favorable outcome for shareholders. It provides protections for both sides and delivers a clear path to close the transaction in the second quarter.”
The huge price cut should serve as a cautionary tale for businesses on the importance of maintaining a strong cybersecurity posture and good visibility into network activity.
Matt Middleton-Leal, CyberArk vice president for the UK, Ireland and Northern Europe, claimed the fallout from the deal should cement cybersecurity as a board-level issue.
“In discussions we’ve had among our customers’ senior leadership, it’s absolutely possible to put in place a proactive framework to prioritize risk mitigation around known vulnerabilities to stop attackers early in the process, protect valuable data and maintain brand integrity,” he added.
“We hope this business outcome will have a ripple effect among other global organizations – the more the industry shares and collaborates on effective cybersecurity strategies, the more effective we’ll be in combating a common enemy.”