The American software giant Yahoo announced on Wednesday that it intends to reduce the number of shareholders and buy back shares worth up to three billion dollars over the next three years. The goal of the stock buyback, which received the green light at the recent annual shareholders’ meeting, is to increase their value by limiting their supply in the market.
Other companies, including Microsoft, have also employed this strategy to reduce excess liquidity. The popular search engine lags behind Google in terms of advertising revenue and has been forced to collaborate with Microsoft. In the first quarter, Yahoo doubled its profit to 300 million dollars. (H)
