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

News Corporation discloses daily buy-back activity to the ASX as part of its ongoing $1 billion stock repurchase program.

Summary

• News Corporation is continuing its stock repurchase program, authorized to buy back up to $1 billion of Class A and Class B common stock.
• The company is providing daily disclosures to the Australian Securities Exchange (ASX) regarding transactions under this program.
• As of March 11, 2025, News Corp. repurchased 14,192 Class A shares for US$383,675.04 and 7,108 Class B shares for US$219,272.56.
• The total amount spent on the repurchase program to date is approximately US$646,928,533.70.
• The repurchases are conducted through Morgan Stanley & Co. LLC.
• The company intends to repurchase shares from time to time, subject to market conditions and stock price.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The company is continuing its buyback program, which is generally viewed favorably by investors as it can increase shareholder value. However, the announcement also includes standard disclaimers about forward-looking statements and market risks.

Positives

• The stock repurchase program aims to enhance shareholder value.
• The company has the flexibility to repurchase shares in the open market or otherwise.
• News Corporation is adhering to ASX disclosure requirements by providing daily buy-back notifications.

Risks

• The actual results of the repurchase program may vary materially due to changes in the market price of the company's stock, general market conditions, applicable securities laws, and alternative investment opportunities.
• The company's intent to repurchase shares is subject to uncertainty and changes in circumstances.

Future Outlook

The company intends to continue repurchasing shares from time to time, subject to market conditions, stock price, and other factors.

Management Comments

• These statements are based on management's current expectations and beliefs and are subject to uncertainty and changes in circumstances.
• We do not have and do not undertake any obligation to publicly update any 'forward-looking statements' to reflect subsequent events or circumstances, and we expressly disclaim any such obligation, except as required by law or regulation.

Industry Context

Stock repurchase programs are a common method for companies to return capital to shareholders, potentially increasing earnings per share and signaling management's confidence in the company's future prospects.

Comparison to Industry Standards

• Comparable companies like The New York Times Company and Gannett Co., Inc. also engage in share repurchase programs as part of their capital allocation strategies.
• The size and pace of News Corp's repurchase program can be compared to those of its peers to assess its relative commitment to returning capital to shareholders.
• For example, if The New York Times Company has a similar market cap and a smaller repurchase program, News Corp's program might be viewed as more aggressive.

Stakeholder Impact

• Shareholders may benefit from the increased earnings per share and potential stock price appreciation resulting from the buy-back program.

Key Dates

Keywords

stock repurchase program, News Corporation, ASX, Class A common stock, Class B common stock, shareholder value, buy-back, Morgan Stanley