Internet media company Yahoo today said its board has authorised a programme to buy back up to $3 billion of its common stock over the next five years.
Yahoo, whose shares rose nearly 4 per cent, said the repurchases will be funded using working capital.
The company had cash, cash equivalents and marketable securities of $4.6 billion as of December 31st.
As of March 4th, Yahoo had 1.4 billion common shares outstanding. The share buyback authorisation represents about 7 per cent of Yahoo's total market capitalisation $42.82 billion.
Yahoo completed its previous stock repurchase programme, which called for the purchase of up to $500 million of stock.
It bought back 38 million shares for $325 million, including $165 million during the first quarter of 2005.
Yahoo also said it has $175 million in structured stock repurchase transactions outstanding. Yahoo shares rose $1.08 to $31.95 in early Nasdaq trade.