Amazon has announced its decision to buy back its shares worth 5 billion. This would be the first instance where the company will be buying back the shares in six years,. The Seattle based retailer however refused to comment on when this stock repurchase program would happen. The company informed that the authorization to act will not have a specific expiration date.
Amazon in its regular filing stated that, “The program allows the Company to repurchase its shares opportunistically from time to time when it believes that doing so would enhance long-term shareholder value.” In 2010 the eCommerce retailer announced that it would repurchase shares worth $2 billion. Amazon has up-scaled its buy back limit from $500 million to $1 billion in 2008. The current buy back announcement is expected to replace the earlier one. Once the news of the repurchasing came out, the share values increased 1.5 percent on Wednesday to close at $490.48 in after-hours trading.
Amazon has also announced some top management changes. The retailer said that Wendell Weeks, the CEO of Corning GLW will join its director board. Diego Piacentini, senior vice president of international consumer business will head the company’s digital technology office in Italy. Piacentini played an important role in the company’s expansion activities in India.