Salesforce Inc. is preparing to sell up to $25 billion in debt to fund a massive share buyback, according to people familiar with the matter. The software giant's planned note sale would be its largest-ever debt offering, underscoring the company's aggressive capital return strategy. The move comes as Salesforce seeks to boost shareholder returns while potentially taking advantage of favorable debt market conditions.

Share buybacks have become a key tool for large tech companies to return cash to investors and support stock prices. For Salesforce, which has a market capitalization of over $200 billion, a $25 billion buyback would represent a substantial portion of its outstanding shares. The company has been under pressure from activist investors to improve its capital allocation and operational efficiency.

By issuing debt to fund buybacks, Salesforce can leverage its strong balance sheet while potentially reducing its tax burden compared to repatriating overseas cash. The timing of the offering could also reflect Salesforce's view that its stock is undervalued relative to its growth prospects. This debt-funded buyback strategy has been employed by other large tech firms seeking to optimize their capital structure while rewarding shareholders.