The Yahoo Board approved the repurchase program allowing the $3 billion in buy backs. The transactions can occur either on the open market or in privately negotiated transactions.
Some are questioning if Yahoo should be using their money to buy back stock or invest more in acquisitions or R&D. BusinessInsider quotes Fred Wilson on buy backs, where he said:
With our stock buyback we were signaling to the market that we had no good ideas about how to spend that cash. We were signaling that we didn’t see much of a future in our business. And smart investors bet against those kinds of companies, managements, and boards.
More details can be found on Techmeme.