Furthermore, the two companies will share any potential legal and regulatory liabilities arising from two major data breaches announced in late 2016. Back in October 2016, one news report had Verizon seeking a USD 1 billion discount after the first breach was announced, according to CSO.
However, according to Verizon, the deal still makes sense, as it brings “Yahoos tremendous talent and assets into our expanding portfolio in the digital advertising space”.
Verizon first announced plans to buy for USD 4.8 billion most of Yahoos assets in July 2016. Under the new terms, Yahoo will be responsible for half of any liabilities related to the breach from government investigations, outside of the US Securities and Exchange Commission and from third-party lawsuits.
Those potential liabilities were not addressed in the original acquisition announcement, which happened before the breaches were reported, the online publication continues. The companies expect the deal to close in the second quarter of 2017.
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