Yahoo increases share buyback authorization by $5bn

Yahoo has reportedly increased its share repurchase authorization by 5 billion dollars and has planned to offer 1 billion dollars in convertible notes.

The search engine has aggressively repurchased its common stock using cash obtained from selling a portion of its stake in China's e-commerce giant Alibaba Group.

According to Fox News, shares of Yahoo increased 1.6 percent to 35.17 dollars on Tuesday following the announcement.

Yahoo spent 3.1 billion dollars on share buybacks in the first nine months of 2013.

The report said that the share buybacks have helped boost Yahoo's shares roughly 74 percent this year.

The company said that the convertible notes will be due in 2018, with interest payable semi-annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2014.

Yahoo also intends to grant the initial purchasers of the notes the right to buy an additional 150 million dollars in notes, the report added.