Verizon is expected to close a revised deal to buy Yahoo at a reduced price — about $250 million less than the original offer. The price dip follows the disclosure of two security breaches at Yahoo in recent years.
Bloomberg reported the lower offer this morning, additionally claiming that both parties in the deal are expected to share legal responsibilities related to the cyber breaches. Reuters reports that the final price reduction could in fact be as high as $350 million.
Verizon announced plans in July of last year to acquire Yahoo for $4.83 billion. The company said that Yahoo would be integrated with AOL, which Verizon purchased in June 2015 for $4.4 billion. Just a few months later, the purchase appeared to be jeopardized by Yahoo’s disclosure of two large data breaches.
In September 2016, Yahoo released information about a 2014 hack that affected at least 500 million accounts. A similar revelation followed in December of last year, when Yahoo stated that a separate security breach in August 2013 had exposed the names, emails, and hashed passwords of more than a billion users. After news of the second major hack, Verizon reportedly began exploring options of either reducing the acquisition’s price tag or abandoning the deal entirely.