Yahoo! Announces $3 Billion Stock Buyback

  • March 25, 2005
Yahoo! Thursday announced the approval of a $3 billion common stock buyback initiative, which comes on the heels of several product announcements over the last week including Yahoo! 360, a blog and social networking service, and the beta of Yahoo! Search for Creative Commons, which lets users search original works that have been shared by authors.

Merrill Lynch released a statement regarding the buyback program, describing it as "a positive." The buyback comes after the expiration of another $500 million buyback, which began in March 2001. A Merrill Lynch analyst wrote in her report that the buyback demonstrates Yahoo!'s cash flow generation ability and a confident management, and will help support the stock and slow dilution from the exercise of stock options.

--Shankar Gupta

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