Dan Loeb, behind the Third Point hedge fund, has sold 40 million Yahoo shares back to the company for $1.16 billion. Third Point is removing three of its members, including Loeb, from Yahoo’s board as part of the buyback–even though it retains about 20 million shares.
Today’s move is significant, if only because Loeb is said to be responsible for bringing Marissa Mayer to Yahoo from Google. The share buyback comes as Third Point has realized about a billion dollars from its Yahoo investment. Mayer made a statement about the news, saying “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.”