Yahoo investor responsible for appointing Mayer sells shares, leaves board

Despite selling off his Yahoo shares, Dan Loeb believes Yahoo is heading in the right direction

Dan Loeb, the man who played a key role in Yahoo's management shakeup and the hiring of new CEO Marissa Mayer, has resigned unexpectedly from the company's board.

Yahoo has agreed to repurchase 40 million shares owned by Third Point, the hedge fund owned by Loeb.

The move, which sees each share sold for $29.11 (£18.95), will reduce Third Point's stake in Yahoo to two per cent. As a result of the deal Loeb has resigned from Yahoo's board, along with members nominated by Third Point, Harry Wilson and Michael Wolf.

Despite selling up, Loeb is confident that he's leaving Yahoo in capable hands, commenting that Yahoo has a bright future under Mayer, the woman he helped appoint as CEO.

"Harry, Michael and I are pleased to have played key roles in Yahoo's resurgence since we joined the board last spring," he said.

"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," Loeb added.

Mayer thanked Loeb for his contributions to 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 foundation," Mayer added.

Loeb was responsible for appointing several members of the Yahoo board, including Mayer and PayPal co-founder Max Levchin.

The news of his resignation from Yahoo, however, wasn't met with a positive response on Wall Street, with shares in the company falling by more than four per cent by the close of trading.

Earlier this year, Yahoo chairman Fred Amoroso resigned from his post after less than 12 months in the role.