Yahoo repurchases Third Point shares as Loeb leaves board

Yahoo agreed to buy back $1.16 billion of shares held by Third Point LLC and said activist Daniel Loeb, who runs the fund, is leaving the board along with other directors added last year to end a proxy fight.

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, Calif.-based company said Monday in a statement. Loeb, Harry Wilson and Michael Wolf are resigning from the board, which will now have seven members.

Loeb became a director in May 2012 in a board shakeup tied to the ouster of former Yahoo Chief Executive Officer Scott Thompson over a failure to correct errors in his credentials. Third Point had been locked in a dispute with Yahoo about its management, faulting Thompson for cutting jobs before he articulated a complete turnaround strategy and for failing to accept a $44 billion takeover bid from Microsoft Corp.

“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,” Yahoo CEO Marissa Mayer said in the statement.

Yahoo stock had gained 46 percent this year before Monday, compared with a 19 percent gain for the Standard &Poor’s 500 Index.

“Harry, Michael and I are pleased to have played key roles in Yahoo’s resurgence since we joined the Board last spring,” Loeb said in the statement. “Since our board’s rigorous search led us to hire Marissa Mayer as CEO, Yahoo’s stock price has nearly doubled, delivering significant value for shareholders.”

The stock repurchased from Third Point will be part of Yahoo’s previously announced $1.9 billion buyback program. Upon completion of the transaction, about $700 million will remain under the $5 billion repurchase authorization announced last year, Yahoo said in the statement.

The board resignations are effective July 31, Yahoo said.

More in Herald Business Journal

Health-care consumers need to take the lead, so get smart

David Russian, CEO of Western Washington Medical Group, writes our third essay about fixing health care.

More business, more competition for Everett kidney dialysis center

Nonprofit Puget Sound Kidney Centers sees large for-profit competitors enter state market.

Molina Medical holds fall carnival for families in Everett

Molina Medical is hosting a free event for families in the Everett… Continue reading

Leadership Snohomish County celebrates 20 years of service

Leadership Snohomish County is celebrating its 20th anniversary. The organization was launched… Continue reading

Snohomish, Monroe manufacturers honored for innovation, excellence

Two Snohomish County companies have been honored with Manufacturing Excellence awards at… Continue reading

Remodeled home tours planned this weekend

This weekend, Edmonds-based Chermak Construction will participate in the 2017 Remodeled Homes… Continue reading

Barron Heating to celebrate anniversary at Marysville showroom

Barron Heating and Air Conditioning is celebrating its 45th anniversary from 10… Continue reading

Robots on Wall Street: Slow-footed regulators lose ground

Watchdogs have to figure out how to check computers running lightening-fast algorithms.

US budget deficit hits $666B, an $80B spike for the year

The deficit issue has largely fallen in prominence in Washington in recent years.

Most Read