In a regulatory filing, Facebook said that the board had approved the buyback on Friday. It will begin in the first quarter of 2017.
The move is an unusual one for a company like Facebook. Capital return programmes are often associated more closely with older, slower-growth companies that are trying to attract a different kind of investor. Alphabet, Google’s parent, did not begin repurchasing shares until last year.
Markets will be keen for more information next week, especially in case Facebook is trying to protect shareholder value in the wake of Donald Trump’s presidential election victory. Trump has vowed to get tough with the technology sector.
Facebook shares, which closed down 0.7% at $117.02 on Friday were indicated up 0.9% at $118.10 in after hours trading.
Story by ProactiveInvestors