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You do realise that I kinda agreed with you right? But since we're bored and want to nitpick, I got a few issues with buybacks.

First... in that Disney/Fox example where they offered Murdoch shares of Disney then, separately, also buy back some $20B of Disney stock, as you said.

If you think about it, that's like giving Murdoch the pro-rata share of that extra $20B in ownership of Disney.

So that's not good for the existing Disney shareholder who, for some reason, want to sell or buy  - depends on whether the offer price was fair or high.

Let say that the offer was fairvalue for the Fox assets. Murdoch got his fair price and some, say, 5% of the new Disney/Fox. 

The $20B buyback would, using existing shareholder cash, would reduce the stocks and increase Murdoch's holdings. So he's getting to have his cake and eat it too.

But... you're saying, those shareholders who select to sell... that's their decision, the buyback would actually increase the market price and they select to sell so it's better for them otherwise.

IF the buyback is done at a "fair" (ie. cheap) price... and it better be else management is making a mistake at existing shareholders' expense (all probably to justify their bonuses)... So if buybacks are done at fair/cheap value, then those shareholders who sell out are selling at or below their holding's fair value.

I mean, management can't overpay... and if they underpay, then those shareholders are losing out. Right?

This could, could possibly, lead to the board/management/large shareholders manipulating the market... or scheme somehow (that's legal) to drive the share price down... or at least to keep the good news well hidden but the bad news more prevalent.

This would keep the market unimpress, the share price low for a while... then they offer to buy back from long suffering shareholders who ought to know better.

Not saying management always do that, but it's possible.

So while share buyback do have their merits, it all depends.

Most clear though is that under the best scenario where management is able and honest and are buying an asset that is undervalued... then their fellow/former shareholders are necessarily losing out and being taken advantaged of.

It also depends on the type of business and the company's financial situation too. I mean, unless the company have so much cash they can stack it sky high and still have left over to not know what to do with, then a buyback is sensible.