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Viacom To Buy Back Stock

On Thursday, Viacom said it is buying back up to $4 million more dollars worth of its stock.

That follows an earlier $3 billion repurchase program of which $2.7 billion has already been spent to buy 70 million shares.

Viacom says Chairman Sumner Redstone's NAIRI Inc., a major shareholder,  will tender shares as part of the buyback to prevent Redstone from upping his overall stake in the company.

Buying back stock is a way for the company to send a signal to the market that it thinks the stock is a good buy at the current price and a way to give shareholders better value for their current holdings, since it decreases the number of shareholders divvying up the profit pie.