Verizon agrees $350m saving in revised Yahoo takeover deal

Verizon Communications (LSE: 0Q1S.L - news) ' takeover of Yahoo (NasdaqGS: YHOO - news) 's core internet business is to go ahead after the US telecoms firm announced it had secured a new cut-price deal.

The proposed deal, first announced last July, had been thrown into doubt after two historic cyber attacks on Yahoo came to light, involving the theft of data from more than one billion users .

Verizon (NYSE: VZ - news) said on Tuesday it had negotiated a $350m (£282m) reduction in the amount it had initially agreed to buy Yahoo's assets, which include search, email and its advertising technology tools as it looks to bolster its revenue streams through mobile video and ads in a market dominated by Google and Facebook (NasdaqGS: FB - news) .

It meant, the company said, that it would pay $4.48bn (£3.6bn) in cash though both entities would split any additional costs that arose from the hackings in 2013 and 2014.

Under the deal, Yahoo will continue to be responsible for any liabilities from shareholder lawsuits and action by regulators.

Verizon executive vice president, Marni Walden, said: "We have always believed this acquisition makes strategic sense.

"We look forward to moving ahead expeditiously so that we can quickly welcome Yahoo's tremendous talent and assets into our expanding portfolio in the digital advertising space.

"The amended terms of the agreement provide a fair and favourable outcome for shareholders.

"It provides protections for both sides and delivers a clear path to close the transaction in the second quarter."

It had previously been announced that the closure of the deal would also signal the departure of Yahoo boss, Marissa Mayer, with the remainder of the company set to be renamed Altaba.

It will essentially be a holding company for its investments in Chinese e-commerce giant Alibaba (Berlin: AHLA.BE - news) and Yahoo Japan that are together worth around $40bn (£32.2bn).

She (Munich: SOQ.MU - news) said on Tuesday: "This transaction will accelerate Yahoo's operating business especially on mobile, while effectively separating our Asian asset equity stakes.

"It is an important step to unlock shareholder value for Yahoo, and we can now move forward with confidence and certainty."