Facebook plans to repurchase $ 6 billion in stock: chief accountant resignation

2016-11-19

Facebook On the evening of November 18th, it was announced that on November 18, 2016, the board of directors had approved a grade A general share repurchase plan with a maximum of $ 6 billion. The repurchase meeting began in the first quarter of 2017. Expire date.

In another separate statement, Facebook announced that the chief accountant (CAO) JAS ATHWAL knew the company on November 14 and decided to resign. The effective time for resignation was February 17, 2017. During this period, Jas Athwal will continue to serve as CAO, and the company will search for trust. Jas Athwal has been working on Facebook for 9 years.

For the repurchase plan, the US financial website TheMotleyfool analyzed that since the release of the third quarter of November 2 and the announcement of the 2017 investment year, Facebook's stock price has fallen by 8.8%, which can be said to have given investment to investment People and Facebook have the opportunity to acquire stocks. In addition, Facebook seems to indirectly give back cash to investors through the repurchase of pipelines. In the third quarter, Facebook cash has increased from 18.4 billion yuan in the same period last year to 26.2 billion yuan.

There are often many reasons for a company to repurchase stocks. For example, stock repurchase is a way for the company to return to holders with cash. Or, when the company has a long -distance plan (for Facebook, such as the development of Instagram, WhatsApp, or investing in virtual reality technology), a short -term stock repurchase will reduce the company's pressure.

In fact, Facebook has already made it clear in the file submitted to the SEC:

"The timing and quantity of stock repurchase depends on many factors, such as prices, ordinary business and market conditions, or new investment opportunities. This repurchase is to cater to the company's capital distribution strategy, so as to give priority to investment development and development The company's long -term business. "

In certain cases, stock repurchase may be forced by investors' pressure. For example, investor carl in 2013 Icahn forced Apple to repurchase the stock. The annual growth rate of Facebook stocks is 9%, but we have never seen an amazing speed of 60%in two years.

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