Japanese conglomerate Sony will kick off a $910 million stock buyback program beginning next week, Reuters reports. The move will result in Sony buying a maximum of 30 million of its own shares. Consequently, the amount of the company’s outstanding shares will be reduced by 2.4%.

According to a Bloomberg Intelligence analyst, Masahiro Wakasugi, Sony’s move was likely driven by the company stock’s recent price decline:

It seems they were perturbed by the steep stock decline. They’re watching the stock price, cash flow is strong and they have the financial resources to carry this out. So it’s a strong message to investors.

Sony’s Share Buyback Perfectly Timed, Stock Was at a Yearly Low

The fall in share price came after the Japanese tech and entertainment giant reported weaker profits.  Sony also cut its revenue guidance for the year.

The buyback program, which will run from February 12 to March 22 will be conducted via the Tokyo Stock Exchange. After the news broke shares of Sony rose by close to 5% in Tokyo. Since the release of its quarterly financial results, shares of Sony had fallen by about 14% to reach their lowest level in over a year.

Sony stock price. Source: TradingView

The selloff had been instigated by fears that Sony’s gaming division was running out of steam. During the usually busy holiday quarter, revenues in the division declined by 14%. This was due to reduced sales of the PlayStation 4 console. In the October-December quarter, 8.1 million PS4 consoles were sold compared to 9 million units in 2017’s Q4.

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