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Tech

Yahoo To Buy 40M Shares From Outgoing Board Member

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The entrance of Yahoo headquarters in Sunnyvale, California is seen in this 20 August 2005 photo. Microsoft said 01 February 2008 it had offered to buy struggling Internet firm Yahoo for 44.6 billion dollars (30.0 billion euros) in cash and stock. AFP PHOTO/FILES/Hector MATA (Photo credit should read HECTOR MATA/AFP/Getty Images)

The entrance of Yahoo headquarters in Sunnyvale. (Hector Mata/AFP/Getty Images)

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SUNNYVALE (CBS/AP) — Activist investor Dan Loeb and two other directors nominated by his hedge fund are leaving Yahoo’s board after big gains in the Internet company’s stock price over the past year.

Yahoo is also buying back 40 million shares of its common stock from Third Point LLC, Loeb’s hedge fund. That cuts Loeb’s stake in Yahoo from 5.8 percent to less than 2 percent.

Loeb instigated the departure of former Yahoo CEO Scott Thompson in 2012. Yahoo named longtime Google executive Marissa Mayer as its CEO last July. The stock has risen about 83 percent since then on stock repurchases and earnings growth stemming from its stake in Chinese Internet company Alibaba.

Yahoo is spending $1.16 billion to buy Third Point’s stock. It’s paying $29.11 per share, Friday’s closing price.

 

 

(Copyright 2013 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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