Yahoo Inc. (NASDAQ: YHOO) has reportedly cut down heavily on the price of its internet business to facilitate a smooth sale to Verizon. Share prices at both ends have seen a minor rise, which is not a very bad news for either party.
The internet giant has recently been racked by data breaches, that caused almost 1.5 billion accounts to have been affected. This proved to be a massive blow to the already diminishing value of the company, further causing Verizon to rethink its plan of taking over.
With a wonderful deal slowly dropping cold, Yahoo made an intelligent move of lowering its selling price by a whopping 350 million USD. This jolted relations right back into place and both the companies openly announced the arrangement last Tuesday to public. The sale will now go through at the rate of $4.48 billion USD, which is a neat price considering the not so pink situation the company was in.
Yahoo is still in the throes of lawsuits and cases that have come upon it as a result of the data breach and this deal is no less than an oasis in a desert. The transaction, however would have gone through much earlier had Yahoo not faced these hacks. Both these incidents, dating back to 2013 and 2014 had caused almost 1.5 billion accounts to be compromised. A hacking in such colossal proportions was sure to create some ripples, which it did, further leaving no choice but to make a major price cut to have the failing internet business sold.
This change of ownership, however, will not make Verizon liable to cover costs that might be faced in carrying out the legal formalities in certain cases. All expenses incurred during the course of this investigation by Securities and Exchange Commission would have to be borne by Yahoo. In case of other government based investigations and litigation, Verizon has agreed to share the burden of expenses.