Yahoo slashed the price of its core internet business in the sale to Verizon by $350 million after a pair of major data breaches.
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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.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.The separate attacks occurred in 2013 and 2014; Yahoo disclosed them this past September and December.After the Verizon deal closes, any future bills stemming from the hack will be shouldered by Altaba Inc. – a company that will become the caretaker of Yahoo's remains, which will include about $7 billion in cash and lucrative stakes in Chinese e-commerce giant Alibaba Group and Yahoo Japan.The package is probably worth even more now because it primarily consists of Yahoo stock, which has risen by nearly 20 percent since last summer.Yahoo shares rose 40 cents to close at $45.50 while Verizon's stock added 24 cents to finish at $49.43 .
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