Yahoo (YHOO) announced Monday, that the company will buy back 40 million shares from hedge fund Third Point.
Yahoo will buyback the shares for $29.11 per share, which puts the deal at almost $1.2 billion. Three Third Point members will step down from Yahoo’s board, including the hedge fund’s CEO Daniel Loeb, reports USA Today.
“They have been incredibly supportive as we have built our executive staff and developed our strategy, and they have helped position Yahoo! for future success,” Marissa Mayer, President and CEO of Yahoo, told USA Today. “While there’s still a lot of work ahead, they’ve given us a great foundation.”
Loeb bought the Yahoo shares in 2011, at that time they were trading for about $13 a share. The decision to sell his shares now means that he has made an over $1 billion with Yahoo.
The deal will lower Third Point’s stake in Yahoo from 6% to 2%, reports USA Today.
YHOO shares were down 4% as of Monday evening.