Yahoo increases share buyback authorization by $5 billion

SAN FRANCISCO Tue Nov 19, 2013 5:50pm EST

Marissa Mayer, President and CEO of Yahoo!, speaks on stage during a fireside chat session at TechCrunch Disrupt SF 2013 in San Francisco, California September 11, 2013. REUTERS/Stephen Lam

Marissa Mayer, President and CEO of Yahoo!, speaks on stage during a fireside chat session at TechCrunch Disrupt SF 2013 in San Francisco, California September 11, 2013.

Credit: Reuters/Stephen Lam

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SAN FRANCISCO (Reuters) - Yahoo Inc said it has increased its share repurchase authorization by $5 billion and that it planned to offer $1 billion in convertible notes.

Shares of Yahoo increased 1.6 percent to $35.17 in after hours trading on Tuesday following the announcement.

Yahoo has aggressively repurchased its common stock in recent quarters using cash obtained from selling a portion of its stake in Chinese e-commerce giant Alibaba Group. In the first nine months of 2013, Yahoo spent $3.1 billion on share buybacks.

The buybacks have helped boost Yahoo's shares roughly 74 percent this year, even as the Web portal's revenue growth has remained stagnant amid competition from Facebook Inc, Google Inc and Twitter Inc.

Yahoo said the convertible notes will be due in 2018, with interest payable semi-annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2014.

The interest rate and other terms of the senior unsecured notes will be determined at the time of pricing Yahoo said. The company also intends to grant the initial purchasers of the notes the right to buy an additional $150 million in notes.

(Reporting by Alexei Oreskovic; Editing by Bernard Orr)

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Comments (2)
Hey Marissa, you might want to save that cash, and Actually FIX your Yahoo website. The email webpage is now Terrible. The financial portions in cellphones is now even WORSE. Anything of value with your webpages is becoming a joke. Soon, people will leave in mass, and never come back.

Nov 19, 2013 5:30pm EST  --  Report as abuse
Vuenbelvue wrote:
Mr. Ted Turner, please come back and buy another Cable station and build a new News Network like you had in the 1980-90′s instead of talk opinion programs that run almost 24 hours a day on the Cable Subscriber’s dime. I think if you were dead, you would turn over in your grave, as the saying goes. Al jazera News is the closest to it but my friends think I’m a sympathizer. See, I don’t even know how to spell that. Help, Mr. Turner.

Nov 20, 2013 9:47am EST  --  Report as abuse
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