Courtesy of Benzinga.
Verizon Communications Inc. (NYSE: VZ)’s proposed acquisition of Yahoo! Inc. (NASDAQ: YAHOO)’s operating business was finalized Tuesday.
Deal Details
The deal was put on hold earlier this year after the internet giant disclosed new revelations about various security breaches.
Reports surfaced last week that the acquisition was still on track to close but at a slightly lower price tag. A Bloomberg report on February 15 suggested that Yahoo will shave $250 million off the acquisition price, but a joint press release from the two companies confirmed Verizon will pay $350 million less for the operating business.
The new price tag on the deal stands at $4.48 billion in cash and is subject to closing adjustments and expected to close in the second quarter of 2017.
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The press release also noted that Verizon and Yahoo will share some of the legal and regulatory liabilities from the data breaches. Specifically, Yahoo will be responsible for 50 percent of any cash liabilities and liabilities arising from shareholder lawsuits and Securities and Exchange Commission investigations will be the responsibility of Yahoo.
Leadership Commentary
Marni Walden, Verizon executive vice president and president of Product Innovation and New Businesses, said: “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.”
Walden added, “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.”
Marissa Mayer, CEO of Yahoo, said: “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. It is an important step to unlock shareholder value for Yahoo, and we can now move forward with confidence and certainty. We have a terrific, loyal, experienced team at Yahoo. I’m incredibly proud of our team’s strong product and financial execution in 2016, setting the stage for a successful integration.”
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