WWE’s Board of Directors has authorized a $500 million stock repurchase program. Stock buyback allows companies to buy back their shares from shareholders with excess cash, reducing the amount of outstanding shares in the market. The exercise typically raises the stock price.

WWE Co-President George Barrios said, “The authorization of a stock repurchase program underscores our commitment to the Company’s shareholders. The decision is supported by WWE’s strong financial performance and demonstrates our confidence in the Company’s future. We believe we can continue to invest for future growth, maintain financial flexibility and return excess capital to shareholders, all of which should keep us on the path toward building long-term value.”

While a stock buyback might lead to a boost in earnings per share, in the long term it might not be as effective.