Why Microsoft to buy back up to $60 billion in shares?

Deonc
2021-09-15

Microsoft to buy back up to $60 billion in shares; names Brad Smith vice chair

FILE PHOTO: A Microsoft logo is seen in Los Angeles

  • MSFT +0.94%



(Reuters) -Microsoft Corp on Tuesday said it will conduct an up to $60 billion share buyback program, raise its quarterly dividend by 11%, and appoint company President Brad Smith as vice chair.

Microsoft said the buyback program has no expiration date and may be terminated at any time, and that it would pay a dividend of $0.62 per share - 6 cents over the previous quarter.

The U.S. technology giant also called the vice chair position an updated executive role for Smith, who currently leads a team of over 1,500 staff in 54 countries, according to his biography on Microsoft's website.


Smith joined Microsoft in 1993 from law firm Covington & Burling to run corporate and legal affairs operations in Europe. He became general counsel in 2002 and, over the next decade, handled the resolution of antitrust cases, the biography showed.

Smith will continue to report to Chief Executive Officer Satya Nadella, Microsoft said.

(Reporting by Shubham Kalia and Kanishka Singh in Bengaluru; Editing by Anil D'Silva and Christopher Cushing)

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Comments

  • Wgey
    2021-09-18
    Wgey
    it shows that the company reaching lower growth part of cycle.
  • KYHBKO
    2021-09-15
    KYHBKO
    buying is good for the company, increasing the EPS by reducing the shares available in the market. no bigger statement than investing into your own company.
  • Billie Lo
    2021-09-15
    Billie Lo
    They are a very disruptive company with a good future ahead in an ever growing industry. Dont panic sell and be patient.
  • Ag1718
    2021-09-20
    Ag1718
    ☀️ Positive thinking is more than just a tagline. It changes the way we behave. And I firmly believe that when I am positive. It not only makes me better but it also make those around me better.?
  • Colin08
    2021-09-16
    Colin08
    They are flush with cash and dont know how to use it. Good to reward their share holders
  • AcidIce
    2021-09-20
    AcidIce
    Buying back their own shares always sound & looks good, but isn't that cheating? not unless it dropped 50% in value in a short few months. but nothing of such happened in Microsoft only Alibaba....
    • Deonc: 

      [强] [强] [强]

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