3dfx Board Approves Buyback of Up to 2 Million Shares
3dfx's board has authorized buying back up to 2 million shares of common stock to offset long-term dilution from the company's stock benefit plans.
3dfx Interactive’s board of directors has signed off on a stock repurchase program that lets the company buy back up to 2 million shares of its common stock on the open market. The buybacks will happen from time to time rather than in one move.
The stated reason is housekeeping: shares issued through the company’s stock benefit plans dilute the stock over the long haul, and pulling shares back in offsets that. No dollar figure or timetable came with the announcement.