Yahoo! said today it agreed to buy back 40 million shares from a hedge fund which sought a shakeup of the Internet giant last year.
The company said it agreed to buy the shares from Third Point LLC,led by activist investor Daniel Loeb,at Fridays closing price of $29.11 per share. After the transaction Third Point will hold some 20 million shares,or less than two percent of Yahoo!s outstanding common stock. Yahoo! shares have nearly doubled over the past year since Marissa Mayer took over as chief executive.