Third Point cuts stake in Yahoo!

<p>Yahoo! stocks are being sold by Third Point.</p>

The Third Point hedge fund has confirmed it is selling some of its stake in internet firm Yahoo!

It has been announced that Yahoo! will buy back 40 million shares from Third Point, which means the fund's stake in the company will drop to less than two per cent.

Activist investor Daniel Loeb will step down from the Yahoo! board as a result, while Harry Wilson and Michael Wolf have also handed in their resignations.

"I'm confident that with Marissa at the helm and her team's focus on innovation and engaging users, Yahoo has a bright future." Mr Loeb said in a statement.

Ronald Josey, an analyst with JMP Securities, suggested investors will think they have had a "good run" with Yahoo! and it is time to take some of their profits out of the business.

Earlier in the month (July 18th), Yahoo! stocks hit an eight-year high after its subsidiary Alibaba, which is one of the biggest companies in China, recorded a 71 per cent rise in its quarterly sales.

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