Shares jump as Broadcom board gives the green light to $12-billion share buyback

Chipmaker Broadcom Inc. (AVGO) announced that its Board of Directors authorized the buyback of up to $12 billion of its common stock. This was effective immediately on the announcement and extends till the end of Broadcom’s fiscal year 2019 — November 3, 2019. Shares jumped at least 4.4% aftermarket on Thursday following the news.

CFO Tom Krause said Broadcom is on board to deliver 50% of the trailing 12-month free cash flow to shareholders in the form of dividends.

The announcement came as a confidence lifter when the chipmaker was facing flak on its ability to operate as a US company. Broadcom forced to move back to the US from Singapore, shortly after POTUS Trump demanded the company to drop its takeover bid for rival chipmaker Qualcomm (QCOM).