Yahoo to buy back 40M shares from key investor (USA Today)
Yahoo has reached a deal with key shareholder Third Point to buy back 40 million shares of the company’s common stock, as it continues its push toward a turnaround. Bloomberg Yahoo will repurchase 40 million shares at $29.11 apiece, leaving Third Point with about 20 million shares, or less than a 2 percent stake, the Sunnyvale, California-based company said today in a statement. Wall Street Journal Daniel Loeb is effectively signaling his job at Yahoo Inc. is done. Forbes Loeb’s involvement with Yahoo has been highly symbolic for his hedge fund business, Yahoo, and to a certain extent Silicon Valley itself. Loeb has played a defining role for Yahoo, getting the company’s CEO, Scott Thompson, to resign last year after exposing that Thompson’s resume contained a computer science degree that he had never received. He also helped Yahoo poach a rising star from Google, Marissa Mayer, who has emerged as a rock star CEO who has revitalized Yahoo’s fortunes. CNET With the stock repurchase, however, Mayer is cleaning house. Loeb and two of his fellow appointees, Harry Wilson and Michael Wolf, will officially resign from Yahoo’s board on July 31. Max Levchin, another Loeb favorite, will stay on as a board member, due mainly to the fact that he was endorsed by both Loeb and the board.
Image by SeanPavonePhoto.