Reference no: EM132679034

"SoftBank Plans $4.8 Billion Share Buyback Following Pressure From Elliott; The proposed share buyback isn't as large as the one urged by the activist shareholder Wall Street Journal; New York, N.Y. [New York, N.Y] 13 Mar 2020.

TOKYO-SoftBank Group Corp. said it would spend as much as ¥500 billion ($4.8 billion) to buy back up to 7% of its own shares, following plunging stock prices and a pressure campaign from one of the world's most aggressive activists."

"Stock-Buyback Plans Shrink; The new coronavirus may threaten companies' buyback plans- though a down market could also create a buying opportunity Wall Street Journal (Online); New York, N.Y. 09 Mar 2020.

U.S. corporations are signalling a reduced appetite for stock buybacks this year, undermining a pillar of support for stocks at a time of heightened volatility. Companies authorized around $122 billion in future buybacks through February, according to data compiled by equity research firm Birinyi Associates, marking a nearly 50% drop from the same period a year ago and representing the slowest pace in three years..."

Discuss the benefits of share buybacks. While having lots of firms suspend buybacks under current market conditions, advise with reasonings if SoftBank should suspend their share buyback plan?