Dan Loeb, an active investor with Yahoo Inc. is all set to leave the company’s board, but not before giving it a windfall. His 15-month stint with the internet giant has been vindicated as he has managed to shake up the long-slumping firm under a new leadership.
While leaving the board, Loeb would be selling his 40m worth shares for $1.16 million that his hedge fund, Third Point LLC, had started buying when Yahoo was busy showing the doors to its then CEO, Carol Bartz. With this selling, Loeb will retain only a 2% stake in the company.
Loeb’s Contribution to Yahoo
When Loeb had first bought the Yahoo stake, the firm was embroiled in a prolonged financial and management murk. Soon after, Loeb forced the removal of the then CEO in 2012 and then himself joined the board along with two of his hand-picked people. Loeb also had an active role to play in Sunnyvale selling half its stake to Alibaba whose success is what has spurred Yahoo’s growth in recent times.