Yahoo To Buy 40M Shares From Outgoing Board Member

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.

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