SoftBank (SFTBY +20.47%) will sell about $41 billion in assets to cover outstanding debts and share buybacks.
- Up and Away. SoftBank shares are down over 50% in just the past several weeks, but news of the repurchasing plan sent share prices skyrocketing 19%.
- It’s a stickup! Elliot Management slowly built up a major position in SoftBank and started pushing for $20 billion in share buybacks.
- Breaking records. The plan brings SoftBanks total share repurchasing budget to $22.5 billion and sets a record for the firm’s largest-ever stock buyback.
How does it affect my wallet?
Buybacks? A stock buyback is when a company buys back its shares from the market.
- Stock buybacks are controversial because they only really benefit shareholders at the highest level. They don’t benefit the workers or consumers.
- The topic has been a hotly debated topic in Washington over the past few months and it could even come into play when U.S. lawmakers finalize a COVID-19 bailout package.
With the U.S. economy where it is now, buybacks could be regulated more tightly in the near future.
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