Yahoo’s security issues knock $350 million off of Verizon’s purchase price

Yahoo is still working through a world of nightmares after having revealed high-volume security breaches. The Wall Street Journal reports that systems analysts found even more existing liabilities in Yahoo’s security structure.

With that likely being a cause for concern, plus the legal trouble the two companies will have to deal with as a result of potentially broken rules by Yahoo’s failure to properly communicate details of the breach — and the cherry on top being loss of business due to trust issues — it seems a discount on Verizon’s planned purchase is in order.

The two sides have agreed to reduce the cost of the buyout by $350 million, bringing the total down to 4.48 billion. They’ve also agreed to split all costs associated with the incident.

That should be enough capital for Verizon to do whatever it is they need to patch up the holes and start cleaning up the mess, and if nothing else too dire develops on either side of the deal then it’s still expected to close in the 2nd quarter of this year.

[via Verizon]