8-K: News Corp Continues $1 Billion Stock Repurchase Program, Discloses Daily Buy-Back Activity to ASX

News Corporation discloses its daily stock repurchase activity to the Australian Securities Exchange (ASX) as part of its ongoing $1 billion buy-back 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 disclose daily buy-back transactions to the ASX.
• As of May 21, 2025, News Corp provided information to the ASX regarding its buy-back activities.
• The company has purchased approximately $676,069,487.35 worth of Class A and Class B shares to date.
• On May 21, 2025, News Corp bought back 13,126 shares of Class A common stock and 6,574 shares of Class B common stock.
• The total consideration paid on May 21, 2025, was US$369,378.77 for Class A shares and US$213,842.36 for Class B shares.
• The highest price paid for Class A shares on May 21, 2025, was US$28.355, and the lowest price was US$27.93.
• The highest price paid for Class B shares on May 21, 2025, was US$32.75, and the lowest price was US$32.28.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive as the company is continuing its buy-back program, which is generally viewed favorably by investors. However, the forward-looking statements are subject to uncertainties, which tempers the overall positive sentiment.

Positives

• The stock repurchase program aims to enhance shareholder value.
• The company has already spent a significant portion ($676.1 million) of the authorized $1 billion on buy-backs, indicating a commitment to the program.
• The buy-back program can potentially reduce the number of outstanding shares, increasing earnings per share.

Risks

• The company's ability to repurchase shares 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 repurchase shares from time to time, subject to market conditions and other factors.

Management Comments

• The company intends to repurchase, from time to time, in the open market or otherwise, a combination of the Company's Class A common stock and Class B common stock.
• The buy-back is intended to enhance shareholder value.

Industry Context

Stock repurchase programs are a common way for companies to return capital to shareholders, especially when they believe their stock is undervalued. This announcement indicates News Corp's confidence in its financial position and future prospects.

Comparison to Industry Standards

• Comparing News Corp's buyback program to similar media companies like Fox Corporation or Paramount Global, the size of the buyback is substantial, reflecting a strong capital position.
• Other companies like Alphabet (Google) and Meta (Facebook) have also engaged in large-scale stock repurchase programs to return value to shareholders.
• The effectiveness of the buyback will depend on the price at which the shares are repurchased and the long-term impact on earnings per share.

Stakeholder Impact

• Shareholders may benefit from the buy-back program through increased earnings per share and potential stock price appreciation.
• The buy-back program reflects the company's confidence in its financial health, which can positively impact employee morale and investor confidence.

Next Steps

• News Corporation will continue to disclose daily buy-back transactions to the ASX.
• The company will continue to execute the stock repurchase program subject to market conditions and other factors.

Key Dates

Keywords

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