Microsoft has planned to buy back its shares from investors by spending $40 bn.
Can this be a gimmick to risen its share value which fell by approximately 30% this year? Probably time will answer this question.
Similar to the big giant, Hewlett- Packard and Nike too have declared a buy back.
HP has plans to buy back $8 bn whereas Nike $5 bn.
Microsoft stated that they by the buy back plan portrays their confidence in the long term growth and commitment to return capital to the share holders.
It is expected that the plan may help revive its declined share value probably due to failure $47.5bn bid to buy Yahoo.
Inspite of the ongoing financial crisis market analysts expect that Microsoft might buy back its shares at attractive rates. At the end of June 2008 Microsoft had $23.7 bn and in its history of 33 years, have never been debt.
This buy back is expected to run till 2013.
Posted under Latest News
This post was written by Kevin on September 23, 2008
