Verizon Communications Inc. will be paying a reduced price for Yahoo! Inc.'s Internet properties after investigations revealed that the web company suffered from the 2013 hacking. However, the cheaper price does not necessarily mean that Verizon managed to save up some cash from the deal.
As reported by Bloomberg News, Verizon will now have to shell out $4.48 billion in cash to own Yahoo! Internet assets. The new price is $350 million lower than the previously announced transaction price of $4.8 billion.
Media outlets said the hacking that affected several Yahoo! Users is the major factor that led to the price reduction for the Yahoo! assets. There had been a delay in concluding the investigation of the cyber breach, but it appears that the initially suspected hacking really did happen.
Because of the hacking investigation, Verizon will now acquire Yahoo! Internet assets for a cheaper price. The assets that it will add to its portfolio of Internet assets include Yahoo Mail, Flickr, Tumblr, Yahoo Finance and Yahoo Sports, USA Today reported.
Verizon is hoping that the acquisition of the assets will prove to be beneficial to its business. The telecommunications had been hoping to expand its reach in the Internet sector. The addition of the Yahoo! Assets is expected to support that dream.
Marni Walden, Verizon's executive vice president and president of product innovation and new businesses, promised that the transaction will be beneficial to the shareholders and both companies strategically and financially.
Although Verizon may have made some savings from the acquisition, it is not clear if it will ultimately have to pay regulatory and civil penalties. Yahoo! Internet assets are facing several investigations due to hacking that affected its users.
Jobs & Hire previously reported that Verizon and Charter are planning a merger in order to create a company that will rule the communications industry.