Rackspace (RAX) Raises Buyback Plan to $1B

In addition to earnings after the close, the Rackspace (NYSE: RAX) board of directors has increased the company's existing share buyback authorization up to $1 billion, in addition to the $200 million of repurchases already carried out. Rackspace expects to fund this buyback program out of cash on hand, future free cash flow and proceeds from near-term debt issuances. The company intends to complete at least $500 million of the new buyback within six to nine months, subject to market conditions and arrangement of financing.

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