Dan Loeb’s Third Point has agreed to sell the bulk of its holdings in Yahoo!, which will result in almost $1.2 billion for the hedge fund.
Yahoo! announced today that it had repurchased 40 million shares from Third Point at a price of $29.11 per share, which is $1.16 billion in value. Following the announcement, the stock immediately fell 3% and as of 11:35 am ET was down 4.75%.
Upon completion of the sale, the hedge fund, which had started out as a thorn in the side of Yahoo!’s board but turned into its saving grace, will own less than 2% of the internet giant. At the same time, Loeb and two other board members—Harry Wilson and Michael Wolf—will step down at the end of the month. Following their resignations, the board will comprise seven members, including Max Levchin, who was appointed as a director upon mutual agreement between Third Point and the board.
"Harry, Michael and I are pleased to have played key roles in Yahoo's resurgence since we joined the Board last spring," said Loeb. "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. I'm confident that with Marissa at the helm and her team's focus on innovation and engaging users, Yahoo! has a bright future."