Monday, September 22, 2008

Microsoft Authorizes $40B Stock Buyback

Redmond, Washington-based Microsoft announced this morning that its board of directors has approved a share repurchase program worth up to $40 billion, on top of a previous $40B stock repurchase program it has just completed. The firm also said it has increased its dividends by 18 percent. According to the firm, the repurchase program expires September 30, 2013. In addition to the buybacks, Microsoft said its board has authorized debt financings of up to $6 billion, for genreal corporate purposes. The moves likely indicate the firm is not stockpiling cash for major acquisitions, after passing on acquiring Yahoo earlier this year.