Yahoo! buys back stock from Third Point
Yahoo! Inc. announced that they have entered into an agreement to repurchase 40 million worth shares of owned by Third Point LLC (Third Point). The purchase price for the deal was set at US$29.11 per share. At the conclusion of the repurchase, Third Point will own an estimated 20 million share in Yahoo!. The shares would equal to less than 2% of Yahoo! Outstanding stock. As settlement with the board of directors and as part of the deal, the directors originally nominated by Third Point -- Harry J. Wilson, Daniel S. Loeb and Michael J. Wolf, submitted their letter of resignations from Yahoo!'s board of directors,.
"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 Yahoo! CEO Marissa 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."
"Harry, Michael and I are pleased to have played key roles in Yahoo's resurgence since we joined the Board last spring," said Third Point CEO Daniel S. 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."
Yahoo! announced a plan to purchase an added US$1.9 billion of Yahoo! common stock. The repurchase was part of that plan. Upon conclusion of the repurchase, an estimated US$700 million will stay under the $5 billion buyback agreement that was announced last year.