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.
The security breaches raised concerns that people might decrease their usage of Yahoo email and other digital services that Verizon is buying.
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.
Related: Amid Security Questions, Yahoo Says It`s Delaying Merger With VerizonThe hacking bombshells, disclosed after the two companies agreed on a sale, represent the two biggest security breaches in internet history.
The revised agreement announced Tuesday eases investor worries that Verizon Communications Inc. would demand a discount of at least $1 billion or cancel the deal entirely.
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