Microsoft plans share buy-back

New Delhi: Microsoft has found something to do with the $34.1 billion in cash, that it has sitting around.

The company has announced that it will buy back stocks worth up to $20 billion next month.

This will be a part of its $40 billion re-purchase plan, which some investors have requested.

The shares will be bought back in a price band of $22.50-24.75 per share.

Microsoft is expected to purchase over 808 million shares, roughly 8.1 per cent of its outstanding shares.

Analysts say the company hopes the buyback will increase the earnings per share, in turn boosting the company's stock, which has declined 16 per cent since March 31.

But others say a buyback will not be enough, the company will need to deliver growth, for the stock to advance.