Sony Plans Biggest-Ever $910 Million Buyback of Its Own Shares
Sony is buying back as much as 100 billion yen ($910 million) of its own stock, the electronics maker’s first-ever large scale repurchase, according to Bloomberg.
The repurchase makes up 2.4 percent of the stock, and comes days after Japanese telecoms and technology giant SoftBank Group announced a record 600 billion yen buyback. Sony has been seeking to strengthen its financial footing under CEO Kenichiro Yoshida, who was promoted from chief financial officer last year. Sony reported weaker profits in the PlayStation business and cut its annual revenue forecast, triggering the steepest share drop in almost three and a half years.
Before buyback announcement, Sony’s stock had declined 14 percent over the last week, to its lowest since October 2017. The shares climbed 4.8 percent in 2018. The company last bought 6.3 billion yen worth of its own stock in 2004, related to its decision to fully merge PlayStation subsidiary Sony Computer Entertainment into the parent company.
Sony’s results underscore the struggle at big technology companies, which are seeing slowing demand for their products and services. Apple reported a decline in revenue for the first time in two years, while chipmakers Intel and Nvidia have warned of weaker sales as China’s economy starts to sputter and looming uncertainly over Brexit.