Disney plans to boost buybacks to $6-$8 billion
Sep. 12, 2013
NEW YORK (AP) — The Walt Disney Co. will buy back between $6 billion and $8 billion of its shares next year, the media company's chief financial officer said Thursday.
That's up from the $4 billion a year that Disney has been spending on repurchasing its shares, CFO Jay Rasulo said during an investor conference.
"Given our confidence in the overall company and where our share price sits in the marketplace we intend to significantly increase our buyback next year," Rasulo said. The company may borrow some money to fund the buybacks toward the end of the year, but not enough to bring its credit rating down, he said.
Disney's shares spiked following Rasulo's comments, and gained more than 2.4 percent, or $1.55, to close at $65.49 Thursday.
Disney's upcoming projects will provide growth for the company, said Rasulo. After buying Lucasfilm last year for $4 billion, Disney is set to release its first "Star Wars" film in 2015. It also expects to open a new theme park resort in Shanghai during the same year.
Rasulo made his comments at a Bank of America Merrill Lynch conference in Beverly Hills, California.