Yahoo plans to sell $1 billion in convertible notes to use the funds to buy back additional shares.
The tech giant's sale will take place privately, according to the Associated Press. In addition, by adding $5 billion to its stock buyback program, Yahoo hopes the purchase will increase the value of its remaining shares.
The Sunnyvale, Calif., company spent $3.1 billion buying back 123 million shares this year. In order to raise the funds necessary to buy back shares, the tech giant sold a portion of its stake in Chinese e-commerce giant Alibaba. The repurchase boosted Yahoo's shares by over 70 percent this year, which has assisted the firm in the race to stay competitive against other Internet-based firms including Google -- while the company, under Marissa Mayer's leadership, continues to rapidly reinvent its online products in a bid to stay relevant.
Against its competitors, growth patterns have begun to stagnate -- but the share program may be able to help revive the company's growth. Yahoo says the notes will be due in 2018, and interest will be payable semi-annually in arrears from June 1 next year.
Separately, at Dreamforce yesterday, an interview between Salesforce CEO Marc Benioff and Yahoo CEO Marissa Mayerdue to protests. However, the CEO did manage to reveal that a head of design is due to be hired in order to make the firm's products more appealing to the general public.