Apple (AAPL) has raised $17 billion through a record-breaking bond sale the largest ever by a non-banking company.
The money will fund Apple's plans to buy back $60 billion worth of stock by the end of 2015, and increase quarterly dividends by 15 percent.
Although Apple has cash reserves of $145 billion easily enough to fund its plans without taking on debt more than $100 billion of that total is held overseas.
Rather than incurring the tax expense of repatriating those funds, then, Apple is taking advantage of low interest rates to fund its plans.
Policy of appeasement
Apple's share price has dropped considerably in the last nine months, falling from $702.10 at its September 2012 peak to $390.53 a few weeks ago.
What's more, Apple's latest financial results released last week showed the company's first year-on-year profit decline in a decade.
As such, Apple is looking to appease concerned shareholders by effectively sharing some of its considerable war chest, and taking steps to increase the value of its shares once again.
In the last week, Apple's share price has risen steadily, and the company's market cap has increased to to $416 billion, making it once again the largest publicly-traded company in the world.
[source: BBC News]
Top Stories
News
May 28th, 2024
PocketGamer.biz Podcast - ustwo games’ María Sayans on the sustainable strategy behind Monument Valley
Feature
May 28th, 2024
Hot Five: Disney x Fortnite, Sega’s sonic speed, and a potential Keywords Studios buyout
Feature
May 27th, 2024
“There has been an increase in funding opportunities for African developers with more exciting times to come"
Events
Unreal Fest Gold Coast 2024 | Australasia | May 29th |
For The Win 2024 | Europe | May 29th |
Indie Craft K-Game Festival 2024 | Europe | May 31st |
Indie Game Fest & Indie Campus 2024 | Europe | May 31st |
Game Access Conference 2024 | Europe | May 31st |
GDCy Fest 2024 | May 31st | |
GameSummit Summer 2024 | Jun 1st | |
BostonFig Online 2024 | Jun 1st |