Yahoo increases share buyback authorization by $5bn

Yahoo has reportedly increased its share repurchase authorization by $5 billion and has planned to offer $1 billion  in convertible notes.

 

The search engine has aggressively repurchased its common stock using cash obtained from selling a portion of its stake in China's e-commerce giant Alibaba Group.

 

According to Fox News, shares of Yahoo increased 1.6% to $35.17 on Tuesday following the announcement.

 

Yahoo spent $3.1 billion  on share buybacks in the first nine months of 2013.

 

The report said that the share buybacks have helped boost Yahoo's shares roughly 74% this year.

 

The company said that 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.

 

Yahoo also intends to grant the initial purchasers of the notes the right to buy an additional $150 million  notes, the report added.