Facebook is buying back up to $6 billion of its stock from shareholders, the company announced in a SEC filing on Friday.
Facebook said the repurchase program will go into effect in the first quarter of 2017 and does not have a fixed expiration date. The company said the buybacks will be consistent with Facebook’s “capital allocation strategy of prioritizing investment to grow the business over the long term.”
Shares in Facebook rose over 1% on the news in after hours trading.
It’s uncommon for tech companies like Facebook to return cash to shareholders through buybacks or dividends, as they generally prefer to spend their cash on growth opportunities. This is Facebook’s first ever buyback program.
And Facebook is still selling artist names for keywords….