Yahoo announces $2B share buyback whilst reports allege Amazon in $2B purchase of Net-a-Porter.
Yahoo announced on Thursday that it will use $2 billion of proceeds from its Alibaba IPO sale to buy back more of its own shares, thereby returning value to shareholders. The Wall Street Journal reports that, ‘Yahoo said about $726 million remains available under a repurchase program announced in November 2013.’ The current plan will expire in March 2018.
The buyback stems from activist investor Starboard Value’s remonstrations to Yahoo to rein in costs and acquisitions, and to start purchasing shares to the value of $4 billion. Their demands were reiterated in a letter to Chief Executive Marissa Mayer this month.
So far, the Alibaba IPO raised $5 billion for Yahoo and the company’s sales of Alibaba shares in 2012 raised $7.6 billion. On Friday, Yahoo saw shares rise 1.17% after hours.
Also in the online market, it seems that Amazon cannot resist its own retail therapy mantra and is now in talks to purchase online luxury retailer Net-a-Porter. Established in 2000 by Natalie Massenet, Net-a-Porter was last bought by Swiss firm Compagnie Financire Richemont for 392 million euros in 2010. If Amazon were to buy the high-end retailer, it would be the largest acquisition made by Amazon to date. On Thursday market trading, Amazon shares fell 0.97% with a further after-hours loss of 0.01%.
MT4 chart: Yahoo
MT4 chart: Amazon
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