Microsoft Repurchasing $40 Billion In Shares

Posted Sep 22, 2008

Microsoft Corporation (NASDAQ:MSFT) announced that their board of directors has approved a share repurchase program that authorizes $40 billion in share purchases.  The share repurchases expires on September 30, 2013.  After declaring the share repurchase, the board also announced a quarterly dividend of $0.13 per share.  This is two cents (18%) higher than the previous quarter’s dividend. 

“These announcements illustrate our confidence in the long-term growth of the company and our commitment to returning capital to our shareholders,? stated Chris Liddell, CFO of Microsoft.  S&P rated Microsoft corporate credit ratings of AAA and Aaa.  About a month ago, an analyst at UBS predicted that Microsoft would buy back about $20 billion. 

The last time that Microsoft authorized a transaction this large was when the company made a bid to acquired Yahoo! Inc. (NASDAQ:YHOO) on February 1st.