Yahoo in Third Point Buy Back as Loeb Exits Board

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July 22 (Bloomberg) -- Bloomberg West Editor-at-Large Cory Johnson and Jonathan Erlichman report that Yahoo! Inc. has agreed to buy back $1.16 billion of shares held by Third Point LLC as activist Daniel Loeb leaves Yahoo's board as a solution to a proxy fight that began last year. He speaks on Bloomberg Television's "In The Loop."

Cory, why now?

The heavy lifting has been done at yahoo!

In terms of a turnaround.

Lots of investors have been pushing for this as dan loeb got involved in the stock.

The company announced a new buyback plan with the last earnings announcement, so this becomes part of that.

They announce $1.9 billion a share buyback, so buying back at the closing price.

It was a nice mark for him.

All those shares are bought back as part of that reauthorization of the share buyback.

That means the share buyback jobs quite far ahead in one day.

The company says it boost earnings per share, but it will also have the effect of removing dan loeb from the board.

He will leave in july, as well as the other two that joined it with him.

With all three of them leaving the board, one way that wall street looks at this is a catalyst for change.

Based on what your sources are telling you, it is this the victory lap?

We came in, agitating for change, got the kb wanted, and now we are finished.

First of all, there is the return of dan loeb to the company.

He had a big victory for investors, for investors, and for himself.

Paris also the fact of the business has fundamentally turned around.

Forget the pending sale, the alibaba assets, japanese assets, which investors have been pushing for four years.

You look at the company and it is not growing much at all, but it has stopped shrinking.

Sales were falling at double- digit rates for years.

Any given quarter, back to 2008, that was arrested by the time that dan loeb joined the board.

Anemic growth, but that is better than shrinkage.

The business is a long way to go, and dan loeb will not be there to see that happen.

I know that you had done a lot of reporting on this story, jon, and how the deal came together.

What else do you have?

This is not something that was discussed over a long period of time.

There were windows for big investors to sell their stakes.

He had told the company he was planning to sell a big amount of his stock.

Actually, he had already sold some stock since joining the board.

As part of that, yahoo!

And marissa mayer said, let's speak about what we can potentially do here.

They say it was a pretty quick process.

So big that started on friday of last week and wrapped up yesterday.

For marissa mayer, this opens the door for her to put her stamp on the board in a bigger way.

You have a border directors around seven, they have not figured out who they want to be the chair.

You would figure they would add a couple more members and then make a decision on who the chair will be.

It is another opportunity for marissa mayer to put her stamp on the company.

If you want to know about the relationship between marissa mayer and dan loeb, it has been fairly good, but both are fairly have strong people.

Dan loeb is direct and marissa mayer is a good leader as well.

Perhaps, based on the stock performance, this was an opportunity for dan loeb to make his next move, but he still owns a lot of stock.

It sounds like they have a good relationship, the way they

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

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