8-K: News Corp Continues $1 Billion Stock Repurchase Program
Daily Buy-Back Notification
News Corporation discloses daily buy-back activity to the ASX as part of its ongoing $1 billion stock repurchase program.
Summary
- News Corporation is executing a stock repurchase program, authorized to buy back up to $1 billion of its Class A and Class B common stock.
- The company is required to report daily buy-back transactions to the Australian Securities Exchange (ASX).
- As of April 23, 2025, the company has spent approximately $664.4 million on repurchasing Class A and Class B shares.
- On April 23, 2025, News Corp bought back 14,192 Class A shares for $378,551.73, with prices ranging from $26.35 to $27.24.
- On April 23, 2025, News Corp bought back 7,108 Class B shares for $219,552.61, with prices ranging from $30.51 to $31.61.
- The buy-backs are conducted through Morgan Stanley & Co. LLC.
Sentiment
Score: 6
Explanation: The sentiment is neutral. The document is a routine disclosure of buy-back activity, with no explicit positive or negative indicators. The buy-back itself is generally viewed as a positive sign, but the disclosure is simply factual.
Positives
- The stock repurchase program aims to enhance shareholder value.
- The company has already spent a significant portion ($664.4 million) of the authorized $1 billion on buy-backs, indicating a commitment to the program.
- The buy-back activity could potentially support the stock price.
Risks
- The company's ability to continue the buy-back program is subject to market conditions, stock price, applicable securities laws, and alternative investment opportunities.
- Forward-looking statements regarding the buy-back program are subject to uncertainty and may not materialize as expected.
Future Outlook
The company intends to continue repurchasing shares from time to time, subject to market conditions and other factors.
Industry Context
Stock repurchase programs are a common way for companies to return capital to shareholders, especially when they believe their stock is undervalued.
Comparison to Industry Standards
- Comparable companies like Twenty-First Century Fox (before acquisition by Disney) also engaged in stock repurchase programs to manage capital allocation.
- The size of News Corp's buyback program ($1 billion) is within the range of similar programs announced by other large media companies.
- The execution of the buyback through open market purchases is a standard practice.
Stakeholder Impact
- Shareholders may benefit from the buy-back program through increased earnings per share and potential stock price appreciation.
Next Steps
- The company will continue to repurchase shares, subject to market conditions.
- News Corp will continue to provide daily disclosures to the ASX regarding buy-back activity.
Key Dates
| Date | Description |
|---|---|
| 22/9/2021 | Anticipated date buy-back will occur |
| 29/09/2022 | Date lowest price was paid for Class A shares during buy-back program. |
| 29/09/2022 | Date lowest price was paid for Class B shares during buy-back program. |
| 19/02/2025 | Date highest price was paid for Class A shares during buy-back program. |
| 19/02/2025 | Date highest price was paid for Class B shares during buy-back program. |
| 23/04/2025 | Previous day on which securities were bought back. |
| 24/04/2025 | Date of this notification to the ASX. |
Keywords
stock repurchase, buy-back program, News Corporation, Class A common stock, Class B common stock, ASX, shareholder value, Morgan Stanley
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