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Verizon Revises Its Deal With Yahoo, Reduces Price Of Acquisition By $350M (techcrunch.com)

Posted by msmash on from the adjustments dept.

Ingrid Lunden, writing for TechCrunch: After the disclosure of two massive data breaches last year, today Yahoo and Verizon finally confirmed new terms for the sale of Yahoo to Verizon: Verizon will pay $350 million less than originally planned, working out to a price of $4.48 billion to acquire Yahoo. The two have also agreed to share legal and regulatory liabilities after the massive data breach at Yahoo, which affected some 1.5 billion users across two hacks, one revealed in September 2016, and another in December 2016.

49 comments

  1. Are they by Big+Hairy+Ian · · Score: 3, Informative

    Bat shit crazy? Yahoo's credibility at the moment is sub zero

    --

    Build a Man a Fire, and He'll Be Warm for a Day. Set a Man on Fire, and He'll Be Warm for the Rest of His Life.

    1. Re:Are they by Narcocide · · Score: 2

      Let me help you read between the lines. Verizon knew all along. They have no intent of letting that foreknowledge scuttle the deal, but they have to keep up public appearances, so they work out a "discount" cover story.

    2. Re:Are they by Anonymous Coward · · Score: 3, Insightful

      They want the patents, the user data, and the stake in Alibaba. The fact that Yahoo is a dumpster fire doesn't concern them.

    3. Re:Are they by Anonymous Coward · · Score: 1

      But Yahoo hasn't been making up alternative truths. All Americans want these days is for someone like D. Trump or A. Jones to scream something about "greatness" and to waffle on about how things are unfair. Credibility doesn't seem to be an appealing feature, they want arrogance, personality disorders and delusional thinking.

    4. Re:Are they by Zocalo · · Score: 4, Insightful

      They want the patents, the user data, and the stake in Alibaba.

      Still vastly overpriced when you consider that the bulk of the user data is available for a hell of a lot less on the darknet (and not so darknet), so any exclusivity you might have had to it is long gone - anyone else who wants the data can have it well - and it's anyone's guess how many accounts are still truly active. There's also the general push back against tech-patents that don't involve actual tangible innovations (e.g. most - if not all - of the Yahoo! portfolio) and how much you generally need to spend on lawyers to leverage any patent assets you may have. Even you manage to successfully navigate the minefield of prior-art, amicus briefs opposing your claims, and convince a jury who quite probably has no real idea what anyone is talking about, there's still no guarantee the judge will award the massive damages you are hoping for, and the process can takes years of bad PR too - see Oracle vs. Google and (of course) SCO vs. The World.

      The Alibaba stock is definitely worth something though, but in that case Verizon might actually be better off just using some third parties to buy up Alibaba shares on the open market rather than going the the pains of a trying to pick over Yahoo!'s carcass for any remaining scraps of fat and gristle that might still have a tiny bit of residual value. It's surely not going to be too long before Yahoo! would be forced to start selling off assets to keep the lights on anyway, and since the only real asset it has that it can sell is its stake in Alibaba...

      --
      UNIX? They're not even circumcised! Savages!
    5. Re:Are they by Anonymous Coward · · Score: 0

      Various the news article to date have stated Yahoo will keep its stakes in Alibaba.

    6. Re:Are they by Anonymous Coward · · Score: 1

      They want the patents, the user data, and the stake in Alibaba. The fact that Yahoo is a dumpster fire doesn't concern them.

      Alibaba isn't part of the deal. Yahoo's share of Alibaba and Yahoo Japan are separate from this deal and are being spun off into a separate company.

      As for Yahoo's patents, user data and advertising business, if its so valuable (i.e., worth $4 Billion) why hasn't Yahoo been able to be successful with it?

    7. Re:Are they by Anonymous Coward · · Score: 0

      Bat shit crazy? Yahoo's credibility at the moment is sub zero

      I totally agree.

      Only an idiotic company overpays, much less pays for "dramatically impaired assets".

    8. Re: Are they by Anonymous Coward · · Score: 0

      Agenda. Hehe. Is it all you talk about nowadays

    9. Re: Are they by Anonymous Coward · · Score: 0

      Where exactly can they purchase and buy it legallly. Another retard talking about the dark net like they are involved... shut up bitch

    10. Re:Are they by Anonymous Coward · · Score: 0

      To be fair just because you have all the materials and tools to build a house it doesn't mean the house you build will be in a livable condition. Perhaps Verizon has a plan for the data that Mayer and co. didn't think of and/or couldn't capitalize on due to poor execution or shortsighted planning.

    11. Re:Are they by The-Ixian · · Score: 1

      As for Yahoo's patents, user data and advertising business, if its so valuable (i.e., worth $4 Billion) why hasn't Yahoo been able to be successful with it?

      Wouldn't that depend on the definition of success?

      I certainly wouldn't mind having the income generated by modern-day Yahoo!. They still employ nearly 10,000 people and, as far as I can tell, they are still profitable (not like some other supposedly "successful" businesses out there).

      --
      My eyes reflect the stars and a smile lights up my face.
    12. Re: Are they by Anonymous Coward · · Score: 0

      Legally? Do you know what the dark net is for?

    13. Re: Are they by Anonymous Coward · · Score: 0

      Like Twitter? It's ok you can say it.

    14. Re:Are they by speedplane · · Score: 2

      Still vastly overpriced when you consider that the bulk of the user data is available for a hell of a lot less on the darknet (and not so darknet), so any exclusivity you might have had to it is long gone - anyone else who wants the data can have it well - and it's anyone's guess how many accounts are still truly active.

      No legitimate company can use illegitimate data from the dark net and not risk a massive lawsuit. Far cheaper to purchase it legitimately.

      --
      Fast Federal Court and I.T.C. updates
    15. Re: Are they by Anonymous Coward · · Score: 0

      That's because liberals are far better comedians. Watch vids of KellyAnne Conway & Grover Norquist doing standup & and try not to gouge out your own eyes.

    16. Re: Are they by Anonymous Coward · · Score: 0

      The hilarity comes from their complete two faced BS. Ya know. Clinton Fdn, DNC corruption, derailing Bernie, etc.. Like we were stupid enough to vote for that corrupt hag... Lol

  2. In Other News by Big+Hairy+Ian · · Score: 4, Funny

    Stock prices at several major tech giants plunged over night as it was revealed they had been in receipt of Marissa Mayer resume

    --

    Build a Man a Fire, and He'll Be Warm for a Day. Set a Man on Fire, and He'll Be Warm for the Rest of His Life.

    1. Re:In Other News by Anonymous Coward · · Score: 0

      Well she can plunge her oversized middle-aged wide ass on my face... as long as I don't have to see *her* face!

    2. Re:In Other News by speedplane · · Score: 1

      Stock prices at several major tech giants plunged over night as it was revealed they had been in receipt of Marissa Mayer resume

      She obviously did not succeed in this venture, but I don't see her as a villain either. Resurrecting Yahoo from the ashes was a pretty impossible task. What's irritating is her golden parachute... getting a windfall in her failure.

      --
      Fast Federal Court and I.T.C. updates
    3. Re: In Other News by Anonymous Coward · · Score: 0

      You're on your own. Not only is her ass not close to wide, but she is quite fuckable.

  3. Is that all by DarkOx · · Score: 2

    So the impairment of yahoo's online assets after two and probably a third massive breach is less than ten percent of the value. This is not actually a very good argument for big investments in security.

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    Repeal the 17th Amendment TODAY! Also Please Read http://www.gnu.org/philosophy/right-to-read.html
    1. Re:Is that all by Jaime2 · · Score: 2

      Due to the cost of security breaches being borne primarily by victims, investing in security has never been a good financial decision. That's the primary reason that security sucks in the IT industry. If it weren't for public shaming and the associated damage to a company's image, it would be even worse.

    2. Re:Is that all by Anonymous Coward · · Score: 1

      Maybe Yahoo just owns $4.48 billion worth of network and server hardware and Verizon wants that.

    3. Re:Is that all by rmdingler · · Score: 1
      You make a great point about the systemic undervaluing of security, but it's probably fair to say the value of Yahoo had plummeted prior to the first Verizon offer.

      Yahoo's timeline: value

      --
      Happiness in intelligent people is the rarest thing I know.

      Ernest Hemingway

    4. Re:Is that all by Anonymous Coward · · Score: 0

      The deal does include Yahoos real estate, though not sure how much real estate Yahoo has.

  4. Make Mayer look like a genius by edtice1559 · · Score: 1

    Can't believe I'm saying this. But had the breech been disclosed sooner and all the users had left, maybe there never would have been an offer at all. Now it only costs 10% of the deal price. Maybe the new response to security incidents should be the ostrich technique.

  5. When you mention this to your kids in ten years. by Anonymous Coward · · Score: 1

    "Who?"
    "Yahoo"
    "ja who?"
    *sigh*

  6. Now a Mayer fan by Anonymous Coward · · Score: 0

    What a fox.

  7. As long as Mozilla Still Gets Their Money by Anonymous Coward · · Score: 0

    Yahoo gave Mozilla a sweetheart deal for about a billion dollars guaranteed revenue over a period of years for making yahoo's search the default on firefox (in the US). The deal was structured so that Mozilla still gets the money even in yahoo gets bought out. Some people thought it was intended as kind of a poison-pill to protect yahoo from a buyout. That seems a little far-fetched to me, more like mozilla was able to take advantage of Mayer's unfounded optimism for the future of yahoo and played their hand for the maximum benefit.

    Whatever the case, as long as Verizon hasn't figure out a way to wiggle out of those payments, I don't really care all that much about the rest of yahoo. Verizon just wants yahoo to max out their big-data businesses, so fuck verizon.

    1. Re:As long as Mozilla Still Gets Their Money by Anonymous Coward · · Score: 0

      mozilla was able to take advantage of Mayer's unfounded optimism for the future of yahoo

      You misspelled "incompetence".

  8. That's still an insane amount of money by Anonymous Coward · · Score: 0

    That is still an insane amount of money for a company most people probably assumed to have ceased to exist many years ago. What makes them think the deal is worth it?

    1. Re: That's still an insane amount of money by Anonymous Coward · · Score: 0

      Its not a simple answer. All yahoo assets, debts/creditors, revenue streams, forecasts, and whatever else they have is literally itemized line by line. Acquisition is tedious by nature and the larger the target, the more tedious.

      Whatever Verizon is planning, perhaps a rebranding and extension of thier own portal and content network is the unknown part to us.

      But its worth it. Or is it. How many companies have overpaid (Snapchat,twitter, ...) and still no roi?

      It could be strategic. It could be a mistake. With the ultra wealthy, it could even be a small favor.

  9. Shhhhhh, shhhhhhh by Isendur · · Score: 2

    I have altered the deal. Pray I don't alter it any further.

    1. Re:Shhhhhh, shhhhhhh by Anonymous Coward · · Score: 0

      Aw man--- you beat me to it!

  10. I think I've seen this movie before... by Anonymous Coward · · Score: 0

    "I am altering the deal, pray I do not alter it any further..."
            --Darth Vad^H^H^H^H^H^HVerizon

  11. What happens to AT&T Mail? by sconeu · · Score: 2

    If the acquisition goes through, Verizon will be in the interesting position of controlling a competitor's email servers.

    AT&T Internet uses Yahoo for its email services.

    --
    General Relativity: Space-time tells matter where to go; Matter tells space-time what shape to be.
  12. So what they are saying is: by The-Ixian · · Score: 2

    The price tag for a 1,000,000,000+ account data breach is $350 million.

    Management calculus: Will this security system cost more than $.35/account? Yes? Don't bother... We'll put that money into our bank accounts instead.

    --
    My eyes reflect the stars and a smile lights up my face.
    1. Re:So what they are saying is: by Anonymous Coward · · Score: 0

      Actually they agreed to share liability from the breaches. It's in the summary.

  13. 9 years, roughly $40 billion less by fermento · · Score: 1

    Just think back to 2008, when Microsoft offered $44.6 billion for Yahoo, but was rejected because Yahoo thought it undervalued their worth. https://www.cnet.com/news/yahoo-rejects-microsofts-bid/ If I was a shareholder, I would be pissed.

    1. Re: 9 years, roughly $40 billion less by Anonymous Coward · · Score: 0

      If I was a shareholder I wouldn't be now.

  14. Make Yahoo great again by fox171171 · · Score: 1

    Build a firewall around it.

  15. Yahoo to absorb all liability charges by Anonymous Coward · · Score: 0

    Per a Fortune Tech article at
    http://fortune.com/2017/02/21/...

    "Yahoo and Verizon will share the legal costs from consumer class action cases related to the breaches. But Yahoo alone will absorb the cost of liabilities related to investor lawsuits and an ongoing Security and Exchange Commission lawsuits."

  16. Altering the deal by Anonymous Coward · · Score: 0

    Anyone else think of this?

  17. Deduct from Mayer's compensation by LesserWeevil · · Score: 1

    Easily the best solution is to deduct this from Mayer's compensation package. If ever there was an individual with an inflated sense of worth, it's her.