Yahoo to boost stock-buyback plan by $5 bn

Yahoo yesterday said it would boost its stock-buyback plan by $5 billion, returning more cash to shareholders as chief executive officer Marissa Mayer sought growth revival at the largest US internet portal.

Yahoo would also sell $1 billion in convertible debt maturing in 2018, in a private placement, according to the Sunnyvale, California-based company's statement yesterday.

Marissa Mayer, chief executive officer said Yahoo like a lot of companies needed to reinvent itself.

She added, one should not design for the expert user.

Mayer's turnaround plans had focused on acquisitions of smaller technology companies that could expand the company's talent pool or reach new sets of users.

The buyback authorisation was the latest since Yahoo agreed in July to repurchase 40 million of its shares from Third Point LLC, run by activist investor Daniel Loeb.

Yahoo sold half its stake in Alibaba Group Holding Ltd last year and added it would return most of the $3.65 billion proceeds to shareholders.

Yahoo had repurchased $5.3 billion in stock since January 2012, which included $1.7 billion in the third quarter, the company said on its earnings conference call on 15 October.

In a separate development, Mayer spoke yesterday at Salesforce.com Inc (CRM)'s Dreamforce conference in San Francisco, where she announced plans to hire a head of design reporting directly to her as part of the company's push to create appealing products.

She said, the senior vice president of design would help the company create apps and web pages that targeted the ''core essence'' of what users wanted.

She added she had accompanied Yahoo product managers on trips to countries including Israel, China and Japan to study how consumers and advertisers made use of the company's products.

Yahoo today said in a statement that it proposes, ''to offer $1.0 billion aggregate principal amount of its convertible senior notes due 2018 (the notes), subject to market conditions and other factors, in a private placement.

"Yahoo also intends to grant to the initial purchasers of the notes the right to purchase up to an additional $150.0 million aggregate principal amount of notes, exercisable within a 30-day period, solely to cover over-allotments. The notes will be offered and sold by the initial purchasers only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended.''

''The notes will be convertible into cash, shares of Yahoos common stock or a combination of cash and shares of common stock, at Yahoos election. Interest on the notes will be payable semi-annually in arrears on 1 June and 1 December of each year, beginning on 1 June, 2014. The notes will mature on 1 December, 2018, unless earlier repurchased or converted in accordance with their terms.''