Yahoo share price: Internet giant boosts share-buyback by $5 billion

October 21, 2019

iNVEZZ.com, Wednesday, November 20: Yahoo Inc (NASDAQ:YHOO), has increased its share buyback plan by $5 billion and plans to offer $1 billion in convertible notes, the US largest web portal announced yesterday. Yahoo has aggressively repurchased its common stock this year, using the proceeds from the sale of half of its stake in Chinese e-commerce giant Alibaba Group.

Yahoo’s share price rose by 1.6 percent to $35.17 in yesterday’s extended trading following the announcement.
Trade these shares now through Hargreaves Lansdown from £5.95 per deal.
**Repurchasing, convertible notes**
Yahoo sold half of its stake in Alibaba Group last year for $3.65 billion and said it would return most of the proceeds to shareholders. In the first three quarters of the year Yahoo has spent $3.1 billion on share buybacks. Since January 2012 the company has bought back $5.3 billion in stock, including $1.7 billion in the third quarter.

The aggressive repurchasing of shares has helped boost Yahoo’s share price by 74 percent this year, even though the company’s sales growth has remained stagnant amid mounting pressure from rivals Google Inc (NASDAQ:GOOG), Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR).
Yahoo said that the convertible notes will be due in 2018, with interest payable on a semi-annual basis in arrears on June 1 and December 1 of each year, beginning on June 1 next year.

**Head of design**
Chief Executive Officer Marissa Mayer also announced plans to hire a head of design who will report directly to her to help the company create appealing products. The announcement was made yesterday at Salesforce.com Inc. (NYSE:CRM)’s Dreamforce conference in San Francisco.
“Yahoo, like a lot of companies, is a company that needs to reinvent itself,” Mayer said. “You shouldn’t design for the expert user,” Mayer said as quoted by Bloomberg.

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Since taking over the Sunnyvale, California-based web giant last year, Mayer has focused on adding fresh blood to the company’s engineering team and product portfolio, through acquisitions of smaller technology companies. Under Mayer, Yahoo has bought a number of tech start-ups, mostly developers of mobile applications, including Summly, Stamped Inc., Jybe Inc. and Qwiki. Its biggest acquisition so far has been this year’s $1.1 billion purchase of blogging platform Tumblr.
**As of 10:38 UTC buy Yahoo shares at $35.74**
**As of 10:38 UTC sell Yahoo shares at $35.52**
Trade these shares now through Hargreaves Lansdown from £5.95 per deal.
Prices can go up and down meaning you can get back less than you invest. This is not advice. Dealing services provided by Hargreaves Lansdown.

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