Microsoft is to embark on a £22bn share buy back strategy after failing to spend its spare cash on acquiring Yahoo.
And despite having plenty of cash lying around to buy back its shares, Redmond also said it would also borrow for the first time on the capital markets when necessary.
News of the company's financial strategy sent its share price up 4% in yesterday's US morning trading.
But the share price was still 20% lower than it was in January, before it unsuccessfully moved on Yahoo. The share buy back probably shows Microsoft has given up any plans to make another offer for Yahoo.
Microsoft started similar share buy back programmes in 2004 and 2006.