There are shares out there in the market. Most of those shares are held by MM's. That is how they keep the market liquid. Not all of the shares are held by them, people like you and I make up a significant amount of the remainder. The MM's make money on every trade. When the company buys back shares from them it reduces the amount of outstanding shares in the market place and this adds value to the shares that you and I have held through this process. The MM's will "hold" the price at a prearranged level in return for the company buying so many shares from them.
Thats about it. It's the way our markets work and it's what makes it such a great place to be able to make money!!! Downside is, you can lose money too if you aren't careful!!!
All buybacks are done the same way. a company will negotiate with one MM and that MM will pick up shares. Per SEC rules, even if the company only negotiated with one MM, other MMs can accumulate shares and offer it to the company.
The company does not want to accused of creating a run on the stock and slapped with a stock manipulation suit. If they are buying it's necessary to be quiet and only PR after the buyng is complete.
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