Third Point offload Yahoo stake
The activist hedge fund have relinquished their topmost corporate holding as fears continue to mount over Yahoo’s share price falling further still
With Yahoo’s shares having surged 80 percent over the past year, hedge fund Third Point have decided to sell two-thirds of their corporate holding back to the internet giant in a deal equivalent to $1.16bn. The sale comprises 40 million shares; each valued at $29.11, and will entail Daniel Loeb’s Third Point relinquishing their three seats on the board – his included.
Yahoo is currently in the midst of a comprehensive turnaround, with Mayer having embarked upon “merger mania” – most recently having bought mobile ad technology start-up Admovate in mid-July. Many believe Yahoo’s shares have peaked and will soon spark a mass selloff.
Yahoo revised its outlook for 2013 downward after having realised a 12 percent fall in ad prices through Q2 alone.
“Probably a lot of investors are saying, we had a pretty good run here, it makes sense to take some off the table,” said Ronald Josey, an analyst at JMP Securities. “Much like a lot of investors followed Third Point in, a lot will follow Third Point out.” Third Point’s head, Daniel Loeb first acquired near 45 million shares in 2011 for $13.02 and was later instrumental in appointing Mayer as CEO. Widely regarded as having instigated the upheaval of Yahoo’s broken management in 2011 and 2012, Loeb led an aggressive – though no less successful -campaign to oust former-CEO Scott Thompson.
