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Dan Loeb Sells 15% Of Yahoo Stake In Past Two Days

Tyler Durden's picture


While the initial response to last week's YHOO earnings was afterhours euphoria all of which fizzled in the first hours of trading, sentiment on the firm which has yet to do more than merely promise may sour in the coming days even more following news late on Friday that the company's formerly staunchest advocate, Third Point's Dan Loeb sold some 15% of his stake, or 11 million of 73 million shares on Thursday and Friday at a price between $19.68 and $19.70. The remaining stake is now 62 million shares, which means Third Point is now longer the firm's largest institutional holder with a 6.17% stake, but drops to 4th place behind Capital Group and above Vanguard, who own 67 and 48.9 million shares respectively. The reason given for these opportunistic sales is that they were "motivated by Third Point`s desire to maintain a roughly consistent percentage holding of Yahoo`s outstanding shares as the company pursues its $5 billion buy-back authorization." Of course considering the $1.5 billion in shares that YHOO has actually bought back represent some 6.5% of the outstanding, one is a little confused how a 15% stake reduction is hedged relative to an actual buyback that is some 60% smaller. Does this mean another 15% stake cut in Q1 when YHOO, supposedly, buys back another $1.5 billion?

But even that question pales in comparison to that other one: why on earth would Dan Loeb want to sell shares in a company that none other than Jim Cramer had this to say about as recently as 2000:

How can Goldman Sachs compete with Yahoo! as a way to invest? Isn't Nokia, with its wireless machine that goes everywhere a better bank than one that needs branches? Isn't Yahoo!, with its access to all of the information and quotes in the financial world a better place to buy stocks than Goldman?


Of course they are.

Why whatever is Third Point thinking.

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Sat, 02/02/2013 - 12:25 | 3209081 Long-John-Silver
Long-John-Silver's picture

Running for the exit is obvious.

Sat, 02/02/2013 - 12:53 | 3209102 Earl of Chiswick
Earl of Chiswick's picture

It's quite simple. Marissa Mayer's creepy smile.



truly remarkable that this person has so many images on the internet almost all of which depict her as the happiest person on earth - like a fcking cartoon character


it's actually one of the best examples I have seen of insincerity revealed, note how she flashes the smile constantly in this interview



(remind you of anyone barack in politics?)

Sat, 02/02/2013 - 12:25 | 3209082 mjcOH1
mjcOH1's picture

So is he selling Yahoo! and buying Facebook?

Sat, 02/02/2013 - 13:14 | 3209145 Motorhead
Motorhead's picture

And some Groupon, hehe.

Sat, 02/02/2013 - 22:24 | 3210188 CPL
CPL's picture

Get in on some of that sweet LinkedIN action.  Hedge the whole thing with Bank of America.  Because you just know terms like America will be around in four years.  Or will they?

Sat, 02/02/2013 - 12:27 | 3209089 Hedge Fund of One
Hedge Fund of One's picture

Raising cash to buy more publicly traded Ponzis, HLF, that is.

Sat, 02/02/2013 - 14:19 | 3209246 BlueStreet
BlueStreet's picture

Probably starting to realize there are no fixes for Yahoo.  If Mayer goes out and buys the next Myspace she is toast.  Buying startups won't move the needle though.  It is what it is, an aging portal.   

Sat, 02/02/2013 - 14:30 | 3209268 besnook
besnook's picture

he is just taking money off the table at a considerable profit. YHOO will be bought this year. it still is the social networking site that has endured through all the changes in the industry. even facebook was modeled on the social network content of YHOO. the difference is YHOO has never crossed the privacy firewall and abused it's users in the process.

Sat, 02/02/2013 - 15:46 | 3209407 Handful of Dust
Handful of Dust's picture

Remain calm...grab your scissors and crawl under the desk....

Sat, 02/02/2013 - 18:33 | 3209689 bobthehorse
bobthehorse's picture

How is Yahoo still in business.

Nobody uses the fucking thing.

I want a five page report.

And I want it on my desk by the morning.


Sat, 02/02/2013 - 20:38 | 3209974 ClassicCommodity
ClassicCommodity's picture

Buy AAPL instead.. wait wut

Sun, 02/03/2013 - 11:23 | 3210818 HeatMiser
HeatMiser's picture

After the jooish takeover last year it was only a matter of time before they were brought into the fold.

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