Third Point founder has made an estimated $1 billion for the hedge fund
Activist investor Daniel Loeb is leaving the board of Yahoo! Inc., the internet company said Monday.
In addition, Yahoo! will repurchase 40 million shares of common stock beneficially owned by Loeb's hedge fund Third Point. The stock will be sold for $29.11 per share.
As Business Insider notes, Loeb's hands-on role in the company has reaped big profits for the investor. The site reports that Loeb bought his stake at between $13 to $15 per share and estimates that Third Point made about $1 billion on its investment.
Relations between the investment guru and the internet portal were often strained. Loeb was active in pushing out Scott Thompson from his perch at Yahoo! when he revealed that the former CEO had falsified his resume. Thompson did not have a computer science degree as he had claimed.
Loeb will keep 20 million shares in the company, slightly less than 2 percent of Yahoo!'s outstanding common stock. In addition to Loeb, Third Point's Harry J. Wilson and Michael J. Wolf will resign from Yahoo!'s board of directors on July 31, 2013.
"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 a 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. I'm confident that with Marissa at the helm and her team's focus on innovation and engaging users, Yahoo! has a bright future."
Loeb is now unencumbered to focus his energies on Sony Corporation, where he is using his 7 percent stake in the company to pressure its leaders to spin-off its entertainment assets.
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