Facebook’s board authorizes $6 billion share repurchase program
In a document filed with the SEC on Friday afternoon, social network Facebook has revealed that the company's board has authorized a $6 billion stock buyback or share repurchase program.
According to the filing, if Facebook decides to implement the stock buyback authorized by its board of directors, the buyback - which does not have an expiration date - will go into effect in the January-March quarter of 2017.
In revealing that a stock buyback has been authorized by the Facebook board, the company said in its SEC filing that a number of factors, including "price, general business and market conditions, and alternative investment opportunities" will affect the timing of the stock buyback by the company as well as the actual number of shares repurchased by it.
Facebook further added that the execution of the $6 billion stock buyback by the company will be "consistent with the Company's capital allocation strategy of prioritizing investment to grow the business over the long term."
Meanwhile, the size of the stock buyback authorized by the Facebook board is compatible with the share repurchase programs executed by some of the other bigwig tech firms in recent years. Apple had repurchased $10.9 billion worth of shares in the fiscal 2016 second quarter; while Google had announced a $5 billion stock buyback in 2015.