Would Carl Icahn's $150 Buyback Be a Win for Apple Investors?
Apple already deserves a place in the stock buyback hall of fame (if something so nerdy actually existed). The iEverything maker is already responsible for the single largest buyback in corporate history. In the wake of mounting investor and media pressure, the tech giant massively strengthened its buyback program last April by upping the amount of capital authorized for share repurchases from the $10 billion it had announced a year before to a jaw-dropping $60 billion.
Apparently some investors just can't be pleased.
As has been widely noted (and tweeted), famed activist investor and billionaire Carl Icahn has been angling for Apple to massively bolster its already gigantic share repurchase plan. Icahn would have Apple continue to borrow in order to fund a truly monumental share buyback plan worth $150 billion.
In this video, Fool contributor Andrew Tonner looks at some of the basic math behind Icahn's suggested buyback to see what kind of returns investors could potentially see if the legendary investor were to get his way.
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The article Would Carl Icahn's $150 Buyback Be a Win for Apple Investors? originally appeared on Fool.com.
Fool contributor Andrew Tonner owns shares of Apple. Follow Andrew and all his writing on Twitter at @AndrewTonner. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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