Microsoft to buy $40Billion of shares back

Anyone read about this today? Apparantly it is the biggest buy back plan in history! The idea is that it will bump up the share price, which has fallen by almost 30% this year.

Hewlett-Packard have also announced plans to buy back $8bn and Nike plan to buy back $5bn of their shares.

Microsoft’s shares have fallen this year, partly because of the failed Yahoo takeover bid. They will be hoping that this plan will restore the share price to it’s former glory.

It is good news for shareholders who will see their stock in Microsoft rise sharply. It is also a clever move from Microsoft, as they will be buying back these shares at attractive prices, due to the current economic situation.