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Amazon Approves $1 Billion Buyback Plan

AP
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Online retailer Amazon.comon Friday said it authorized a debt repurchase program to retire notes worth about $1.25 billion and a share repurchase program worth up to $1 billion.

Amazon.com will repurchase, redeem or retire up to all of its 4.75 percent convertible subordinated notes due 2009, with about $899 million in principal outstanding, and its 6.875 percent convertible subordinated notes due 2010, with around 240 million euros ($350.1 million) outstanding.

The repurchase program replaces a previous $500 million debt repurchase program.

The company also said it will buy back up to $1 billion in shares over the next two years, replacing a $500 million repurchase program.

The company had about 427 million shares outstanding as of Dec. 31, according to the company's most recent quarterly report filed on Jan. 30.

Shares rose $2.34, or 3.3 percent, to $73.25 during premarket trading, after closing at $70.91 on Thursday.

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