Verizon Communications Inc. (NYSE:VZ) will still buy Yahoo! Inc. (NASDAQ:YHOO) after all, but the price of the company is considerably lower.
The two companies had announced that the details of the data breach had slowed down the final details of the acquisition that will see Yahoo’s operations being added to the largest carrier in the U.S., based on number of subscribers.
More negotiations continued and it was determined that Verizon would acquire the Internet giant for $250 million less than what the original deal dictated. The carrier was going to acquire Yahoo for $4.8 billion.
The deal is expected to be completed sometime during the second quarter of 2017. The deal also ensures that the leftovers of Yahoo’s operations from the deal will be renamed Altaba Inc. and the combined company will have to deal with the legal responsibilities linked to the breaches.
The announcement of the new deal will come in days or weeks, according to people close to the matter. The new agreement has yet to be finalized and could still change.
Verizon had 143.9 million subscribers as of the third quarter of 2016, which is nearly 15 million more than the next carrier.
The breach in question occurred in 2013 when hackers acquired e-mail addresses, dates of birth and passwords that were scrambled. More than 500 million accounts were affected.
VZ stock is down 0.7% Wednesday, while YHOO shares gained 1.2%.
