Re:Yahoo board strife as Dan Loeb splits from board
by soumyadeb on Monday August 26, 2013 @02:51AM
(#6275566)
Loeb made more than a billion dollar (over 100% return) in 2 years.
http://www.forbes.com/sites/nathanvardi/2013/07/22/billionai...
This whole episode seems like another hedge-fund driven money making plan - take some equity, get control of board, hire a high profile CEO, take seemingly big bets, jack up the stock price and silently exit. This yahoo stock buy-back seems to be a way to avoid the insider trading charges.
A good read on this http://online.wsj.com/article/SB1000142412788732478320457862...
Re:Yahoo board strife as Dan Loeb splits from board
by jacquesm on Monday August 26, 2013 @03:06AM
(#6275599)
Yahoo has been buying back lots of stock which is one reason it is as high as it is.
It goes something like this:
- Loeb & co buy 5% of the company
- gain board seats
- force the CEO to step down
- headhunt Mayer
- Yahoo uses cash it got with selling a chunk of Alibaba to buy its own stock
- Loeb & Co unload at a huge profit
- and give up their board seats again
Re:Yahoo board strife as Dan Loeb splits from board
by constapop on Monday August 26, 2013 @11:15AM
(#6277553)
Exactly - this was his plan whole time. That is why he sent letter about Thompson's resume; that is why he wanted seat; that is why he wanted to "unlock value" of Asian assets;
that is why Yahoo bought his shares at July 19’s closing price, guaranteeing liquidity without forcing Third Point to pay a discount, as usually happens when an investor offloads a large chunk of stock.
A guy like Loeb doesn't hang around forever, just long enough to get the bulk of the upside. At a guess Loeb is impatient with Mayer's reform, it takes too long for him & his allies. Corporate raiders make their money with short term plans, they rarely sit around as long as they did here.