4Kids Entertainment has revealed that its board of directors has authorised the company to purchase - from time to time through to December 31st 2008 - up to 1,000,000 shares in the firm's common stock.
The deals can be struck in the open market or through negotiated transactions.
Alfred Kahn, chairman and CEO, said: "The board of directors believes that 4Kids' stock is undervalued and that it is an excellent investment for the company to buy back shares.
"Also, I have exercised 120,000 stock options, which were set to expire on December 31st 2007. After selling a sufficient amount of stock to pay the exercise price and taxes on the 120,000 stock options, I will be adding the remaining 65,000 shares of 4Kids stock to my holdings."