by Christopher Freeburn | September 13, 2013 11:09 am
Disney‘s (DIS) CFO told attendees at an investor conference that the company will vastly increase the number of shares it buys back next year.
Jay Rasulo said on Thursday that Disney plans to repurchase between $6 billion and $8 billion worth of its shares in 2014. The media giant has spent about $4 billion buying back shares recently, the Associated Press noted.
Rasulo indicated that Disney is sufficiently committed to expanding its share buybacks that it could borrow funds to finance the move. Any additional borrowing would not be enough to negatively affect its credit rating, he added.
Disney’s movie studio took a big hit this summer when its reboot of The Lone Ranger bombed with audiences.
However, it is looking forward to the release of the first new Star Wars movie in 2015. Disney acquired the rights to the franchise from creator George Lucas last year for $4 billion.
Shares of Disney rose modestly in Friday morning trading.
Source URL: http://investorplace.com/2013/09/disney-stock-buybacks-could-double/
Short URL: http://invstplc.com/1fpm5zq
Copyright ©2014 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.