Verizon Confirms $350 Million Discount On Yahoo Purchase Following Embarrassing Data Breaches

Marissa Mayer
Verizon has made it official -- the company today revealed that it has mutually agreed to lower its purchase price of Yahoo by $350 million, bringing the total value of the deal down to $4.48 billion in cash. This follows a report from last week, which indicated that Verizon was seeking a $250 million to $350 million discount for the internet portal.

“The amended terms of the agreement provide a fair and favorable outcome for shareholders,” stated Marni Walden, Verizon’s Executive Vice President and President of Product Innovation and New Businesses.

For her part, current Yahoo CEO Marisa Mayer chimed in, writing, “We continue to be very excited to join forces with Verizon and AOL. This transaction will accelerate Yahoo’s operating business especially on mobile, while effectively separating our Asian asset equity stakes.”

yahoo logo on glass

This “price adjustment” comes after Yahoo disclosed two serious security breaches last year — both of which were announced following Verizon’s official offer. The first breach, which was revealed in August, affected at least 200 million Yahoo accounts. A hacker, known simply as Peace, demanded a 3-bitcoin ransom for the data, which amounted to around $1,800 at the time. Information that was stolen included usernames, hashed passwords, dates of birth, and secondary email address.

When confronted with the news that its security had been compromised, Yahoo first responded, “We are aware of a claim...We are committed to protecting the security of our users’ information and we take any such claim very seriously. Our security team is working to determine the facts.”

Peace fired back, writing, “Well f***them they dont want to confirm well better for me they dont do password reset.”

The second disclosure, however, was even more epic. Yahoo revealed that hackers had stolen account info from over one billion accounts. According to Yahoo, the breach actually occurred way back in August 2013.

Verizon is expected to close the deal during the second quarter.


Via:  Variety
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