Activist investor Daniel Loeb, who was behind the campaign to revamp Yahoo, will leave his post as director at the technology giant.
The decision was spurred by Yahoo's decision to buy back 40 million shares owned by Loeb's hedge fund Third Point. The move reduces Third Point's stake in Yahoo(YHOO) to 2% from about 6%, leading Loeb to resign from the board, along with two other directors nominated by Third Point -- Harry Wilson and Michael Wolf.
Yahoo CEO Mayer thanked Loeb's contribution in a statement: "Daniel Loeb had the vision to see Yahoo for its immense potential - the potential to return to greatness as a company and the potential to deliver significant shareholder value."
Loeb, Wilson and Wolf's resignations are effective July 31.
Yahoo will buy the shares at $29.11 a share, for a total of $1.2 billion. The repurchase is part of Yahoo's larger $5 billion buyback plan announced last year.