A Yahoo logo is pictured in front of a building in Rolle, Switzerland, December 12, 2012. Reuters/Denis Balibouse

Yahoo and Verizon finally agreed to close their pending deal but the acquisition price has been discounted by US$350 million (AU$455 million). Verizon's acquisition of Yahoo was approximately valued at US$4.5 billion (AU$6 billion) in cash. However, it is expected to close in Q2 2017 as it is still subject to closing adjustments. In November, Yahoo warned investors that the deal has no assurance while in January Yahoo updated that the closing date would be delayed.

Both companies would share legal and regulatory liabilities arising from data breaches that Yahoo has incurred. The data breaches would not be taken into account if certain closing conditions have been satisfied. It would not be considered in the determination of the occurrence of Business Material Adverse Effect.

In addition to the amended terms, Yahoo would be responsible for any cash liabilities incurred from the litigation related to breaches. Liabilities from Security Exchange Commissions (SEC) investigation, non-SEC investigation, shareholder lawsuits and third-party litigations were part of Yahoo's responsibility. However, the amendment required Yahoo a 50 percent cash liabilities. "The amended terms of the agreement provide a fair and favorable outcome for shareholders. It provides protections for both sides and delivers a clear path to close the transaction in the second quarter," Verizon executive vice president Marni Walden said in a statement.

"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.," Walden said.

Marissa Mayer, Yahoo's CEO, said that she was proud of the strong product and financial execution of Yahoo's team. She said that the company could now move forward with confidence because of the deal. She also said that the deal was an important step that unlocks shareholder value for Yahoo. "We continue to be very excited to join forces with Verizon and AOL. This transaction will accelerate Yahoo's operating business especially on mobile, while effectively separating our Asian asset equity stakes," Mayer said.

T-Mobile CEO John Legere has taken a jab over the deal. "Verizon, everybody knows, Yahoo is driving them nuts. They're damned if they do it, they're damned if they don't," he said.

The acquisition of Verizon to Yahoo would create one of the largest portfolios of owned or partnered global brands. In July 2016, both companies entered into a definitive stock purchase agreement. Based on the agreement, Verizon would acquire the core internet business of Yahoo to use its more than 1 billion users for building an online advertising powerhouse.