Third Point to sell 40 million shares back to Yahoo Inc

July 22
4:26 PM 2013

On Monday, Third Point LLC, an activist hedge fund, agreed to sell 40 million worth of shares in Yahoo back to the internet company. The shares are valued to be around two-thirds of the company's entire stake in Yahoo Inc.

The board directors decided to sell the stake for $29.11 per share, resulting to a 5 percent decrease of shares.

Third Point chief Daniel Loeb, along with two other board directors appointed by the hedge fund, will resign from their positions from Yahoo Inc's board.

After the purchase, Third Point will own less than 2 percent of Yahoo's common stock, amounting to around 20 million shares.

The increasing share buybacks as well as the value of Yahoo Inc's Asian assets which have resulted to the surging of the internet company's stock by 80 percent over the past year had played a large role in Third Point's decision.

"Probably a lot of investors are saying 'We had a pretty good run here, it makes sense to take some off the table,'" JMP Securities analyst Ronald Josey said in an interview, adding, "Much like a lot of investors followed Third Point in, a lot will follow Third Point out."

Yahoo Inc announced its plans to fund the transaction with Third Point mainly with case and that it would heighten earnings per share.

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