Facebook Expands Share Buybacks

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Facebook spent $9.4 billion to buy back 54 million shares of its class A common stock in the first nine months of 2018.

Facebook spent $9.4 billion to buy back 54 million shares of its class A common stock in the first nine months of 2018.


Photo:

Igor Golovniov/Zuma Press

Facebook
Inc.


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said Friday it approved a plan to boost its share-buyback program by $9 billion.

The social-media giant had previously authorized repurchases of up to $15 billion of the company’s class A common stock in 2017. This is the second increase to its repurchase program this year. In April, it boosted the program by $9 billion.

In the first nine months of 2018, the company used $9.39 billion to buy back 54 million shares of its class A common stock, according to its quarterly filing with the Securities and Exchange Commission on Oct. 31. At the time, it said it had $3.54 billion remaining in the program.

In the securities filing announcing the increase, the social-media giant said the repurchase program doesn’t have an expiration date.

The buyback announcement comes as Facebook’s share price has declined about 37% since its peak in July amid privacy concerns, questions about the company’s handling of data and an overall slide in tech stocks.

Facebook shares, which closed Friday at $137.42, rose 0.7% in post-market trading.