RealTime IT News

Microsoft Buys Back Billions in Stock

Microsoft  said it will repurchase $16.2 billion shares of additional stock, expanding the buyback program announced in July to $36.2 billion.

In July, the software giant said it would buy back $20 billion in shares by August 17, 2006 with an option to purchase another $20 billion before June 30, 2011.

Microsoft announced it would repurchase 155 million common shares of its stock, amounting to $3.8 billion. The news followed the closing of yesterday's Dutch-auction based tender offer.

Microsoft saw $44.28 billion in revenue for the fiscal year ending June 30, a rise of 11 percent.

"They practically have a Federal Reserve mint up there in Redmond printing money," Joe Wilcox, senior analyst with JupiterKagen told internetnews.com at the time of the announcement.

Shares of Microsoft were up by 77 cents to $25.47 after it announced the expanded buyback program.