Verizon Continue to Purchase Yahoo in a Bigger Discount Instead of the Original Deal
It seems like Verizon is still going to purchase Yahoo after the two massive security breaches that affect more than one billion of Yahoo users. The telecommunications company has made an official declaration about its new arrangement that reveals that the discount is significantly more profound than the original price.
According to CNN Tech, the two companies have agreed to new terms of the deal, that the acquisition price would be $350 million from its original deal of $4.8 billion. In addition, Verizon and Yahoo will share certain legitimate and administrative liabilities arising from its specific information breaches that brought by Yahoo.
Verizon's head of product, Marni Walden said that the company has always believed that the acquisition is obtaining a strategic sense. The altered terms of the agreement give a reasonable and favorable result for shareholders.
However, Digital Trends reported that as of now Yahoo has been forced to manage various obstacles that surround its upcoming deal to Verizon. Yahoo had been hit with multiple claims from the clients asserting that the said company is careless, and the U.S. Senate has likewise started probing Yahoo over the breach.
In November, Yahoo warned the investors that there was no assurance that Verizon would really proceed with the deal. But last month, Yahoo informed the investor that the expected closing date will be delayed.
Marissa Mayer, CEO of Yahoo said that the company is being extremely excited to join forces with the Verizon and AOL. The said transaction will accelerate Yahoo's operating business, particularly on mobile, while effectively separating the Asian asset value stakes.
Verizon's objective was to use Yahoo's billion clients to create a web-based advertising powerhouse to its rival Google and Facebook. Verizon agreed to purchase Yahoo's core Internet business in July.
Verizon hopes that the new acquisition will help it move outside its customary telecommunications role and into the mobile media and advertising world. While Yahoo essentially appears to be eager for some relief from its numerous issues that they had encountered.
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