Yahoo to buy back $3bn of its common shares ahead of Verizon deal
Bengaluru — Yahoo said on Tuesday that it would buy back $3bn of its common shares to provide liquidity to stockholders looking to sell shares ahead of the company’s pending deal with Verizon. Shares in Yahoo, which has a 15% stake in Chinese e-commerce company Alibaba, were up 2% at $50.81.
The Dutch auction tender offer will expire on June 13, the company said. Yahoo said its directors and executive officers will not tender any shares in the buyback offer.
Verizon agreed to buy Yahoo’s core internet properties last year for $4.83bn in cash. It lowered the original offer by $350m in February following two enormous cyber attacks.
After the Verizon deal, Yahoo will be renamed Altaba, a holding company whose primary assets will be its stake in Alibaba and a 35.5% stake in Yahoo Japan.