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by ogre_codes 2094 days ago
Company shares are valued based on future earnings. If the company is undervalued, the value of remaining shares increases over time. As the future value of the shares taken off market is greater than the current share value. Lots of companies have gone this route; market cap increases over time and existing shares increase in value.

If the company is overvalued, the shareholders just get screwed as the company is buying back shares which are already worth less than the future value of the companies earnings.