Why Dan Loeb Is Leaving Yahoo Board

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

July 22 (Bloomberg) -- Yahoo agreed to buy back $1.16 billion of shares held by Third Point and said activist Daniel Loeb, who runs the fund, is leaving the board along with other directors added last year to end a proxy fight. Jon Erlichman reports on Bloomberg Television's "Bloomberg West" (Source: Bloomberg)

What is going on, how this happened?

We understand this came together relatively quickly.

Dan loeb became an investor to create some shareholder value.

That happened in a big way, since he vested, the stock has more than doubled.

Third point has already sold a significant amount of yahoo!

Stock, a part of 9 million shares, so as far as this the bill goes, there are windows when investors and investors have an opportunity to sell.

That window opened up last week.

He approached the company and wanted to sell stock.

The company , based on conversations from friday, had an idea of a buy back as it had with no room under its current program.

Not to use all their buyback money on buying back from third point, but just enough to bring his stake down to a certain level which basically allows everyone to make a clean break, and for him to walk away from the border directors.

They cooked at $1.9 billion buyback like that.

I wonder what this means for these three board members peewit them leaving, the biggest shareholder backing away, what does this mean for marissa mayer?

It creates a big opportunity, actually.

When it comes to the relationship between dan loeb and marissa mayer, we are told it is a good one, but they were two people with big ideas.

It was not uncommon for them to have long debates about the direction for the company.

She no longer need to have those conversations.

Now you have a seven-person board, so room to add a couple of members which she can add to have influence over.

And remember, there is an interim care.

-- chair.

Yahoo!

Is working with a search firm to find a permanent chair, but up to this point, there is not any main candidate.

There is still a lot of positioning that will happen.

She will have a say in that.

Dan loeb on the board with his cohorts, and they get the share buyback, the bentley share back -- eventually sell back to the company.

What will he do, going forward?

I do not think this is an overly complicated story.

If yahoo!

Was trading at $30 last week, who knows if he would have wanted to make this move.

The same-store would have been true for the rest of yahoo!

Shares.

It makes it easier for him to sell more stock.

If it does not continue to climb, do not be surprised for him to hold on a bit longer.

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change