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Yahoo Cuts Sale Price to Verizon By $350 Million After Hacks

/ Source: Associated Press
This Tuesday, July 19, 2016 photo shows a Yahoo sign at the company's headquarters in Sunnyvale, Calif.
This Tuesday, July 19, 2016 photo shows a Yahoo sign at the company's headquarters in Sunnyvale, Calif.Marcio Jose Sanchez / AP

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Yahoo is taking a $350 million hit on its previously announced $4.8 billion sale to Verizon in a concession for security lapses that exposed personal information stored in more than 1 billion Yahoo user accounts.

The revised agreement announced Tuesday eases investor worries that Verizon Communications Inc. would demand a discount of at least $1 billion or cancel the deal entirely.

Related: Amid Security Questions, Yahoo Says It’s Delaying Merger With Verizon

The hacking bombshells, disclosed after the two companies agreed on a sale, represent the two biggest security breaches in internet history.

The security breaches raised concerns that people might decrease their usage of Yahoo email and other digital services that Verizon is buying. A smaller audience makes Yahoo's services less valuable because it reduces the opportunities to show ads — the main reason that Verizon struck the deal seven months ago.

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