Yahoo to buy back stocks worth $3 bn

Yahoo wants to decrease the number of its shareholders and will buy back up to $3 billion in stocks over three years, the internet search company said yesterday after its board approved the move at its recent annual meeting.

Yahoo wants to decrease the number of its shareholders and will buy back up to $3 billion in stocks over three years, the internet search company said on Wednesday after its board approved the move at its recent annual meeting.

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Re-purchasing of stocks is generally designed to raise value by limiting the number of shares on the market. Other firms, such as Microsoft, have also used the strategy to decrease cash reserves.

The search engine has lagged behind Google in advertising sales and been forced to cooperate with Microsoft. In the first quarter, Yahoo doubled earnings to $300 million.