The multi billion dollar deal between Verizon and Yahoo appears back on track after nearly unraveling when Yahoo revealed a series of data breaches dating back several years. But now both sides have agreed to a new price for Yahoo’s core internet businesses. Wall street journal reporter Ryan Knutsen broke the story and came up with the details:
According to Ryan Knutsen when he was questioned during an interview,
“What is the final price Verizon will be paying?” In reply he answered:
“They agree to knock $350 million off the price tag, so that brings it down to about $4.5 Billion, roughly. Verizon decided that they couldn’t just let this keep dragging out forever. There was still more they wanted to know, they sort of knew what the risk parameters were by what they were taking on. Still more password resets that had to take place. But they realize if they just keep studying this, this can drag out to late into the year. And they have very ambitious plans about trying to compete with Google and Facebook and digital online advertising.This is the part of the larger strategy for Verizon that they are eager to get on with.”
Verizon did some of it’s own studies about what the impact of the breaches were on the brand. But by large, the users engagement in Yahoo News, Sports and finance which is one thing that Verizon was interested in. But also, more specifically the email accounts, people really didn’t leave Yahoo as some people feared would happen.
But they did agree in January to have some sort of a more deep dive technical meeting with Verizon’s engineers and with Yahoo engineers. And they learned something in the process that helped them get some closure. But one of the things that they did learn was that there may be some uncertainty about some of the Yahoo’s internal systems might have been compromised. So that might make it difficult to integrate those into AOL, which Verizon acquired a couple of years ago.
And about the future liabilities the company that selling Yahoo is gonna retain 50% of any future liabilities and cost that come up. Verizon plan is to try to create a bunch of online portfolios, websites and internet properties that they can sell advertising against. Because they have a lot of really rich data from their subscriber base, about a 113 million people that pay Verizon every month.