Sony in $910M Stock Buyback
The move is a first for the company and will see it purchase a maximum of 30 million of its own stock, representing around 2.4 percent of its outstanding shares.
Sony Corp. is set to buy back up to ￥100 billion ($910 million) of its own stock in a first for the Japanese conglomerate, it was announced Friday morning in Tokyo.
Investors reacted positively to the announcement, pushing Sony stock up nearly 5 percent in early morning Tokyo trading.
The entertainment-to-electronics group, led by CEO Kenichiro Yoshida, said the decision was taken by a meeting of its board of directors "held today." The buyback is set to take place between Tuesday and March 22 via the Tokyo Stock Exchange.
Sony stock had fallen more than 14 percent since it announced its quarterly results last Friday. Despite a record quarterly profit and forecast for a record full-year profit, the company reduced its revenue outlook, in part due to falling demand for the sensors it supplies for smartphones, falling sales of its PlayStation 4 console and concerns about a global economic slowdown.
"Sony believes that continuously increasing corporate value and providing dividends are essential to rewarding its stockholders. In consideration of its financial condition and the price of its common stock, among other things, Sony has decided to repurchase its own shares," the company said in a statement.
The announcement was made just before the markets opened in Tokyo.