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Yahoo said Monday that it has entered into an agreement to repurchase 40 million shares of its common stock from activist investor Daniel Loeb‘s Third Point.
The purchase price of $29.11 per share means the price tag on the deal amounts to more than $1.16 billion. The price equals the closing price of Yahoo common stock on Friday.
Following the repurchase, Third Point will beneficially own approximately 20 million shares, representing less than 2 percent of Yahoo’s outstanding common stock.
Loeb, who is also currently pushing Sony Corp. for changes, helped press for changes at Yahoo and played a key role in installing Marissa Mayer in the CEO post.
Loeb, Harry Wilson and Michael J. Wolf, who were Third Point’s representatives on the Yahoo board, have submitted their resignations, effective July 31. The board will then comprise seven members. Max Levchin, who was appointed as a director upon mutual agreement between Third Point and the board, will remain on the board.
“Daniel Loeb had the vision to see Yahoo for its immense potential — the potential to return to greatness as a company and the potential to deliver significant shareholder value,” said Mayer. “On behalf of the board and our entire team, I’d like to take this opportunity to personally thank Dan, Michael and Harry for the tremendous opportunities they created here at Yahoo. They have been incredibly supportive as we have built our executive staff and developed our strategy, and they have helped position Yahoo for future success. While there’s still a lot of work ahead, they’ve given us a great foundation.”
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