Yahoo Inc said on Monday it will buy 40 million of its shares owned by activist hedge fund Third Point LLC for $29.11 a share, Friday’s closing price, and that three Yahoo directors nominated by Third Point have resigned.<\/p>\n
Third Point, headed by Daniel Loeb, last year settled a bitter proxy battle with Yahoo after months of criticism of the company. Third Point will still own about 20 million shares, less than 2 percent of the Internet media company’s common stock.<\/p>\n
The resignations of directors Daniel Loeb, Harry J. Wilson, and Michael J. Wolf were part of Yahoo’s settlement with Third Point in May 2012, Yahoo said.<\/p>\n
The company, which plans to fund the Third Point transaction primarily with cash, said it would increase earnings per share.<\/p>\n
After the deal, about $700 million will remain under a $5 billion overall buyback authorization that Yahoo announced last year.<\/p>\n
Yahoo shares fell 87 cents, or 3 percent, at $28.23 on Nasdaq in early trading.<\/p>\n
<\/p>\n
Yahoo makes old email IDs available<\/strong><\/a><\/p>\n Yahoo\u2019s Mayer eyes video<\/a><\/strong><\/p>\n Did Yahoo pay too much for Tumblr? Here\u2019s why it may not matter.<\/strong><\/a><\/p>\n