00:00SK Hynek shares hired this morning after announcing a nearly $30 billion share buyback, shares up 5%.
00:06Let's bring in Bloomberg Tech host Ed Ludlow.
00:09Ed, what do we make of the size and the timing of this announcement?
00:12Yeah, it's a shareholder return policy to stabilize the stock, right?
00:16So SK's Korean shares are up 150% year-to-date.
00:19They rose 275% last year, but they are down significantly since the highs of June,
00:26where everyone was so fixated on high bandwidth memory.
00:29SK has a 60% market share.
00:32Four high bandwidth memory chips are going to data center.
00:35But what's really interesting about the mechanism of the buyback is that SK then cancels those shares
00:41instead of holding them under Treasury stock.
00:43And if you remember, when SK did its listing of ADRs, they had issued new stock diluting shareholders,
00:50which was a particular grievance of the retail shareholder.
00:53So they're kind of unwinding that by doing this buyback, then cancel,
00:57but also saying with everything that's going on in the world of AI and all of their capital commitments
01:01in Korea and here in the United States, they're committed to doing 50% of cash flows
01:06as returns to shareholders, which, you know, again, stabilization of the stock.
01:11So, thank you for being so young.
01:11BRENDIÙ‹O
01:11You
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