Facebook plans its first stock buyback

New York, Nov 19 (IANS) In a first since going public, Facebook is planning to buy back $6 billion in stock from shareholders beginning in the first quarter of of 2017, a document filed with the Securities and Exchange Commission revealed.

"Usually a stock buyback programme is a way to repay investors with cash currently sitting in the bank. Facebook does not offer a dividend and never has, but it does have $26 billion in cash and marketable securities, according to its latest earnings filing," RECODE reported on Friday.

"Facebook might also feel its stock is undervalued and want to bring some of it back in-house. Either way, this is Facebook’s first stock buyback to date," the report added.

There are also reports about the resignation of Facebook’s Chief Accounting Officer, Jas Athwal. After nine years, he will leave the company in mid-February.