8-K: News Corp Continues $2 Billion Share Buyback Program

News Corporation announced ongoing progress in its Class A and Class B common stock repurchase programs, with over $964 million already executed under the 2021 authorization and an additional $1 billion authorized for 2025.

Summary

• News Corporation is continuing its stock repurchase programs for Class A and Class B common stock.
• The 2021 Repurchase Program, authorized on September 21, 2021, allowed for repurchases of up to US$1 billion.
• An additional US$1 billion was authorized under the 2025 Repurchase Program as of July 15, 2025, bringing the total authorized buyback across both programs to US$2 billion.
• As of December 31, 2025, approximately US$964,224,046 has been spent under the 2021 Repurchase Program.
• On December 31, 2025, the company repurchased 30,471 Class B shares for US$909,163.23 and 70,004 Class A shares for US$1,836,736.95.
• The primary reason for the buybacks is to enhance shareholder value.
• Goldman Sachs & Co. LLC is the broker facilitating the buyback transactions.

Sentiment

Score: 7

Explanation: The ongoing share repurchase program, including a recent additional authorization, is generally viewed positively as it indicates management's confidence in the company's valuation and commitment to returning capital to shareholders. It aims to enhance shareholder value.

Positives

• The ongoing share repurchase programs demonstrate a commitment to returning capital to shareholders.
• The authorization of an additional US$1 billion under the 2025 Repurchase Program indicates management's confidence in the company's financial position and a continued focus on shareholder value.
• The buyback aims to enhance shareholder value by reducing the number of outstanding shares.

Risks

• Actual results of the buyback may vary materially due to changes in the market price of the Company's stock.
• General market conditions could impact the effectiveness or execution of the buyback program.
• Applicable securities laws may affect the repurchase programs.
• Alternative investment opportunities could influence management's decision-making regarding capital allocation.
• Other risks, uncertainties, and factors described in the Company's filings with the Securities and Exchange Commission may also affect the program.

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, applicable securities laws, and alternative investment opportunities.

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 to enhance shareholder value.

Industry Context

Share repurchase programs are a common strategy employed by mature companies in the media and information services sector, like News Corporation, to return capital to shareholders and signal confidence in the company's valuation. This ongoing program aligns with broader market trends where companies with strong cash flows utilize buybacks to optimize capital structure and potentially boost earnings per share.

Comparison to Industry Standards

• News Corporation's total authorized buyback of US$2 billion across two programs (2021 and 2025) is a substantial commitment, comparable to similar capital return initiatives seen from other large-cap media conglomerates. For instance, companies like Paramount Global or Warner Bros. Discovery have also engaged in significant share repurchase activities to manage their capital and enhance shareholder returns.
• The stated reason 'to enhance shareholder value' is a standard justification for buybacks across industries, reflecting a common corporate finance objective.
• The use of Goldman Sachs & Co. LLC as a broker is typical for large-scale repurchase programs by publicly traded companies.

Stakeholder Impact

• Shareholders: Potential for increased earnings per share and enhanced shareholder value due to a reduced share count. Those holding shares benefit from the company's capital return strategy.

Next Steps

• Continue repurchasing Class A and Class B common stock under the authorized programs.
• Provide daily disclosure of transactions to the Australian Securities Exchange (ASX) if any repurchases occur.
• Disclose information concerning the Repurchase Programs in quarterly and annual reports.

Key Dates

Recommendation

While the ongoing share buyback program is a positive signal for shareholder value, this filing is a routine update on an existing program. It does not present new fundamental information that would significantly alter the investment thesis for a seasoned investor. The buyback is an expected capital allocation strategy, and the impact on stock price is likely already factored in or will be incremental. A 'hold' recommendation reflects the stability and ongoing commitment to shareholder returns without suggesting a new catalyst for significant upward movement based solely on this update.

Keywords

News Corporation, NWSA, NWS, Share Buyback, Stock Repurchase, Capital Return, Shareholder Value, SEC Filing, 8-K, ASX Notification, Common Stock