Walt Disney Co. is the biggest entertainment company in the world. The company had planned to buy back USD6 billion to USD8 billion worth of stock starting next year. The buyback move was Disney's stepped up efforts to increase returns as capital spending decreased.
The Burbank, CA based entertainment mogul said it would borrow funds to finance part of the repurchase, according to Disney CFO Jay Rasulo. The CFO discussed the buyback at an investor conference in Beverly Hills, California sponsored by the Bank of America Corp. Rasulo further added the company had intended to maintain its debt ratings.
The buyback comes as outlays shrunk from a peak of USD3.78 billion last year. In recent years, Walt Disney Co. had expanded parks in California and Florida. The company also built cruise ships and developed a resort in Hawaii. The company had been scheduled to open a new destination in Shanghai at the end of 2015. Disney could buy back around 6.8% of the stock at its current price.
Disney increased by 2.4% to USD65.49 at the trading close in New York today. The stock had gained 32% this year.
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