Yahoo is taking a USD350 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 yesterday eases investor worries that Verizon Communications Inc. would demand a discount of at least $1 billion or cancel the deal entirely. The hacking bombshells, disclosed after the two companies agreed on a sale, represent the two biggest security breaches in internet history. Under the amended deal, Yahoo will be responsible for 50 percent of any cash liabilities incurred following the closing related to government investigations and lawsuits related to the breaches. Liabilities arising from shareholder lawsuits and SEC investigations will continue to be the responsibility of Yahoo. “The amended terms of the agreement provide a fair and favorable outcome for shareholders,” said Marni Walden, Verizon executive vice president and president of product innovation and new businesses.
Intercontinental Hotels surges on special dividend
Intercontinental Hotels Group Plc rose to the highest since 2003 after the company announced it would pay a special dividend of USD400 million and reported operating profit that came in at the high end of analyst estimates. The payout, which will be made in May, comes on top of an 11 percent increase in the total dividend for 2016 after profit rose by 4 percent in 2016, the Denham, England-based company said in a statement yesterday.
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