8-K: News Corp Continues $1 Billion Stock Buyback Program

News Corporation reports ongoing daily share repurchases under its US$1 billion stock buyback program for Class A and Class B common stock, aiming to enhance shareholder value.

Summary

• News Corporation is continuing its stock repurchase program, authorized for up to an aggregate of US$1 billion of its Nasdaq-listed Class A common stock (NWSA) and Class B common stock (NWS).
• The 2025 Repurchase Program was authorized as of July 15, 2025, with the stated purpose of enhancing shareholder value.
• As of January 26, 2026, the company has purchased approximately US$8,762,930 worth of Class A and Class B shares under this program.
• On January 26, 2026, 70,004 Class A shares were bought back for US$1,876,373.22, with prices ranging from US$26.69 to US$26.97.
• On January 26, 2026, 30,471 Class B shares were bought back for US$943,784.38, with prices ranging from US$30.855 to US$31.21.
• On January 23, 2026, 70,004 Class A shares were bought back for US$1,869,687.83, with prices ranging from US$26.565 to US$26.88.
• On January 23, 2026, 30,471 Class B shares were bought back for US$946,615.13, with prices ranging from US$30.93 to US$31.17.
• The buy-back is being conducted through Goldman Sachs & Co. LLC and does not require security holder approval or have restrictions on foreign participation.
• No ASX-listed CDIs will be repurchased in these programs.

Sentiment

Score: 7

Explanation: The ongoing stock buyback program is a positive signal for shareholders, indicating management's confidence and commitment to returning capital, which can support share price and earnings per share.

Positives

• The ongoing stock repurchase program demonstrates management's commitment to returning capital to shareholders.
• The buyback aims to enhance shareholder value by reducing the number of outstanding shares.
• The company has a substantial remaining authorization of approximately US$991.24 million for future repurchases.

Risks

• Actual results of the repurchase program may vary materially due to changes in the market price of the Company's stock.
• General market conditions could impact the effectiveness and execution of the buyback.
• Applicable securities laws and alternative investment opportunities may influence the program.
• Other risks, uncertainties, and factors described in the Company's SEC filings could affect the program's outcome.

Future Outlook

The company intends to continue repurchasing Class A and Class B common stock from time to time, in the open market or otherwise, subject to market conditions, the market price of its stock, and other factors. The forward-looking statements are based on management's current expectations and beliefs and are subject to uncertainty and changes in circumstances.

Management Comments

• The buy-back program is intended 'To enhance shareholder value'.

Industry Context

Stock buyback programs are a common corporate finance strategy used by mature companies to return value to shareholders, often signaling confidence in the company's financial health and future prospects. They can also help improve earnings per share by reducing the number of outstanding shares.

Stakeholder Impact

• Shareholders: Potential for increased share value and improved earnings per share due to reduced share count. This is a direct return of capital.
• Investors: Provides insight into the company's capital allocation strategy and financial health.

Next Steps

• News Corporation is expected to continue repurchasing Class A and Class B common stock under the 2025 Repurchase Program until the US$1 billion aggregate limit is reached or the program is otherwise concluded.

Key Dates

Recommendation

The ongoing stock buyback program is a positive indicator for News Corporation, demonstrating a commitment to shareholder value and potentially supporting the stock price. However, as this is a routine update on an existing program rather than a new strategic initiative or significant financial performance announcement, a 'hold' recommendation is appropriate for investors to maintain their current positions while monitoring the broader market and company fundamentals.

Keywords

News Corporation, stock buyback, share repurchase, NWS, NWSA, Class A common stock, Class B common stock, shareholder value, capital return