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

News Corporation reported daily share repurchases for its Class A and Class B common stock, continuing its existing $2 billion buyback program aimed at enhancing shareholder value.

Summary

• News Corporation is actively repurchasing its Class A (NWSA) and Class B (NWS) common stock under two authorized programs totaling $2 billion.
• The 2021 Repurchase Program authorized up to $1 billion, with approximately $978,015,455 already utilized for both Class A and Class B shares.
• An additional 2025 Repurchase Program authorized another $1 billion, which has not yet been significantly utilized.
• On January 8, 2026, the company bought back 70,004 shares of Class A common stock for a total consideration of US$1,858,760.21, at prices ranging from US$26.205 to US$26.695.
• On the same day, 30,471 shares of Class B common stock were repurchased for US$926,309.26, with prices between US$30.01 and US$30.54.
• The total shares bought back on January 8, 2026, across both classes amounted to 100,475 shares for a combined consideration of US$2,785,069.47.
• The buybacks are conducted in the open market or otherwise, through Goldman Sachs & Co. LLC, and do not require security holder approval or have foreign participation restrictions.
• The primary reason for the buy-back is to enhance shareholder value.

Sentiment

Score: 7

Explanation: The filing indicates a positive sentiment as it confirms the ongoing execution of a share repurchase program, which is generally viewed favorably by investors as a means of returning capital and enhancing shareholder value. No negative news or delays were reported.

Positives

• The ongoing share repurchase program demonstrates management's commitment to returning capital to shareholders.
• Buybacks can enhance shareholder value by reducing the number of outstanding shares, potentially increasing earnings per share and supporting stock price.
• The company has a substantial remaining authorization of approximately $21.98 million under the 2021 program and a full $1 billion under the 2025 program, indicating continued capital return potential.

Risks

• Forward-looking statements regarding the intent to repurchase are subject to uncertainty and changes in circumstances.
• Actual results may vary materially due to factors such as changes in the market price of the company's stock, general market conditions, applicable securities laws, and alternative investment opportunities.
• Other risks, uncertainties, and factors described in the company's filings with the Securities and Exchange Commission could impact the repurchase program.

Future Outlook

The company intends to continue repurchasing its 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's repurchase programs are authorized to acquire up to $1 billion in the aggregate of outstanding Class A and Class B common stock under the 2021 program, with an additional $1 billion authorized under the 2025 program.
• The company intends to repurchase shares to enhance shareholder value.

Industry Context

Share buybacks are a common capital allocation strategy employed by mature companies in various industries, including media and entertainment, to return value to shareholders, optimize capital structure, and signal management's confidence in the company's valuation. News Corporation's ongoing program aligns with this broader industry trend.

Comparison to Industry Standards

• Many large-cap media and technology companies, such as Disney, Comcast, and Meta Platforms, regularly engage in significant share repurchase programs as part of their capital management strategies.
• The scale of News Corporation's $2 billion aggregate authorization is substantial and comparable to similar programs seen from well-established companies with strong cash flows, indicating a commitment to shareholder returns.
• The use of an 'other buy-back' type, as described for entities established outside Australia, is standard for companies like News Corporation that are listed on multiple exchanges (Nasdaq and ASX) and conduct repurchases on their primary market (Nasdaq).

Stakeholder Impact

• Shareholders: Potential for increased earnings per share and stock price support due to reduced share count, enhancing overall shareholder value.
• Investors: Provides transparency on the company's capital allocation strategy and ongoing commitment to returning capital.

Next Steps

• The company is expected to continue repurchasing Class A and Class B common stock from time to time under its authorized programs.
• Further daily buy-back notifications will be provided to the Australian Securities Exchange (ASX) as required by their rules.

Key Dates

Recommendation

The ongoing share repurchase program signals management's confidence in the company's valuation and its commitment to returning capital to shareholders. While this filing is a routine update, the consistent execution of buybacks can provide a floor for the stock price and potentially drive long-term value appreciation, making it an attractive entry point for investors who believe in the company's fundamentals.

Keywords

News Corporation, Share Buyback, Stock Repurchase, Capital Return, NWSA, NWS, ASX, Nasdaq, Shareholder Value