Despite Yahoo's recently reported data breaches, Verizon still plans to acquire the company — but with a hefty price slash.
Verizon initially agreed to buy Yahoo's operating business in July 2016 for $4.83 billion. But in September 2016, Yahoo revealed it suffered a data breach in 2014 that affected 500 million users. In December 2016, Yahoo disclosed it was the victim of an August 2013 data breach that affected more than 1 billion users.
Yesterday, the companies announced they've altered the terms of their agreement. Verizon will now acquire Yahoo for $4.48 billion, a reduction of $350 million off the original price.
The deal is expected to close in the second quarter of 2017.
Under the new terms of the agreement, Yahoo will pay for half of any cash liabilities invoked due to non-Securities and Exchange Commission investigations and third party litigation related to the breaches. Additionally, Yahoo's data breaches won't be taken into account when determining whether a "business material adverse effect" happened.
"We have always believed this acquisition makes strategic sense," Marni Walden, Verizon's executive vice president and president of product innovation and new business, said in a statement. "The amended terms of the agreement provide a fair and favorable outcome for shareholders."