SUNNYVALE, Calif.--(BUSINESS WIRE)--
Yahoo! Inc. (NASDAQ: YHOO) today announced that it has entered into an
agreement to repurchase 40 million shares of Yahoo! common stock
beneficially owned by Third Point LLC ("Third Point"), at a purchase
price of $29.11 per share. The purchase price equals the closing price
of Yahoo! common stock on July 19, 2013.
Following the repurchase, Third Point will beneficially own
approximately 20 million shares, representing less than 2 percent of
Yahoo!'s outstanding common stock. In accordance with the Board's
settlement agreement announced on May 13, 2012, each of the directors
originally nominated by Third Point -- Daniel S. Loeb, Harry J. Wilson,
and Michael J. Wolf -- have submitted their resignations from Yahoo!'s
board of directors, effective July 31, 2013. The Board will then
comprise seven members. Max Levchin, who was appointed as a director
upon mutual agreement between Third Point and the Board, will remain on
the Board. The remaining directors are committed to revisiting the
Board's size and composition.
"Daniel Loeb had the vision to see Yahoo for its immense potential - the
potential to return to greatness as a company and the potential to
deliver significant shareholder value," said Yahoo! CEO Marissa Mayer.
"On behalf of the Board and our entire team, I'd like to take this
opportunity to personally thank Dan, Michael, and Harry for the
tremendous opportunities they created here at Yahoo!. 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.
While there's still a lot of work ahead, they've given us a great
"Harry, Michael and I are pleased to have played key roles in Yahoo's
resurgence since we joined the Board last spring," said Third Point CEO
Daniel S. Loeb. "Since our Board's rigorous search led us to hire
Marissa Mayer as CEO, Yahoo!'s stock price has nearly doubled,
delivering significant value for shareholders. I'm confident that with
Marissa at the helm and her team's focus on innovation and engaging
users, Yahoo! has a bright future."
Yahoo! previously announced a plan to purchase an additional $1.9
billion of Yahoo! common stock; the new repurchase agreement becomes
part of that plan. Upon completion of this repurchase, approximately
$700 million will remain under the $5 billion buyback authorization
announced last year, on which the Company plans to continue to execute.
Yahoo! expects to fund the transaction primarily with cash, and the
transaction is accretive to earnings per share (EPS).
Yahoo! is focused on making the world's daily habits inspiring and
entertaining. By creating highly personalized experiences for our users,
we keep people connected to what matters most to them, across devices
and around the world. In turn, we create value for advertisers by
connecting them with the audiences that build their businesses. Yahoo!
is headquartered in Sunnyvale, Calif., and has offices located
throughout the Americas, Asia Pacific (APAC) and the Europe, Middle East
and Africa (EMEA) regions. For more information, visit the pressroom (pressroom.yahoo.net)
or the company's blog (yahoo.tumblr.com).
Media Relations Contact:
Sara Gorman, 408-349-4040
Joon Huh, 408-349-3382
Source: Yahoo! Inc.
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