Facebook plans to buy back $6 billion in stock

Facebook will buy back as much as $6 billion in stock from shareholders beginning in the first quarter of 2017, according to a document filed with the Securities and Exchange Commission Friday.

Usually a stock buyback program 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.

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.

Also reported to the SEC Friday: Facebook’s chief accounting officer, Jas Athwal, has resigned after nine years. He’ll leave the company in mid-February.

Facebook stock is up about 1 percent in after-hours trading.

This article originally appeared on Recode.net.

Explanatory journalism is a public good

At Vox, we believe that everyone deserves access to information that helps them understand and shape the world they live in. That's why we keep our work free. Support our mission and help keep Vox free for all by making a financial contribution to Vox today.

One-Time Monthly Annual

$95/year

$120/year

$250/year

$350/year

Other

$

Yes, I'll give $120/year

Yes, I'll give $120/year

We accept credit card, Apple Pay, and Google Pay. You can also contribute via