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August 18, 2006

Microsoft buys back $3.8B of shares, shifts remainder

Posted by David Hunter at 10:34 AM ET.


Microsoft Corp. on Friday said it will have purchased about $3.8 billion worth of its shares in a tender offer this week, or less than one-quarter of the planned repurchase of up to $20 billion in stock.

As a result, Microsoft, the world’s largest software maker, shifted the timing for its total $40 billion buyback program.

The $3.8B is 155 million shares at $24.75 per share, or about 1.5 percent of the outstanding shares.

Microsoft said on July 20 it planned to buy back as much as $40 billion of its stock, with up to $20 billion purchased through a tender offer in August, and up to $20 billion more through 2011.

On Friday, the company said the remaining $16.2 billion worth of shares offered in the August tender have been added to its longer-range buyback program through June 30, 2011.

The formal press release for today’s announcement is here. The stock buyback was announced in July to gladden the hearts of investors disappointed with the lackluster performance of Microsoft’s share price, so I suppose the big news is that Microsoft wasn’t able to spend all $20B that they were willing to lay out at up to $24.75 per share which was a slight premium to the market price when the buyback was announced. There seem to still be a lot of folks hoping for better days.

Update 8/24: The formal press release announcing the final results of the tender offer is here.

Filed under Financial, General Business, Investor Relations, Microsoft

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One Response to “Microsoft buys back $3.8B of shares, shifts remainder”

  1. Microsoft beats the street for 1Q07 -- Microsoft News Tracker Says:

    [...] Microsoft CFO Chris Liddell tells Reuters that the incomplete share buyback shaved $0.04 off the per share results. Filed under Executives, General Business, Financial, Investor Relations, Christopher Liddell, Microsoft [...]

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