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

News Corporation announced daily updates on its ongoing Class A and Class B common stock repurchase programs, totaling up to $2 billion.

Summary

• News Corporation is actively executing its authorized stock repurchase programs for both Class A (NWSA) and Class B (NWS) common stock.
• The 2021 Repurchase Program, authorized on September 21, 2021, allows for the acquisition of up to US$1 billion in aggregate of the company's shares.
• An additional 2025 Repurchase Program, authorized on July 15, 2025, provides for an extra US$1 billion in share repurchases.
• The company intends to repurchase shares from time to time in the open market or otherwise, utilizing Goldman Sachs & Co. LLC as its broker.
• As of September 5, 2025, approximately US$755,491,104 has been spent under the 2021 Repurchase Program for both classes of shares combined.
• On September 5, 2025, 56,213 Class A shares were bought back for a total consideration of US$1,653,207.47, with prices ranging from US$29.19 to US$29.755.
• On the same day, 24,469 Class B shares were repurchased for US$817,012.57, with prices ranging from US$32.665 to US$33.71.
• The primary objective of these buy-back programs is to enhance shareholder value.

Sentiment

Score: 7

Explanation: The ongoing share repurchase program is a positive signal for shareholders, indicating management's confidence and commitment to returning capital. The routine nature of the daily notification, however, means it's not a new, overwhelmingly positive development, but rather a continuation of an existing strategy.

Positives

• The ongoing share repurchase programs demonstrate management's confidence in the company's valuation and future prospects.
• The programs are designed to enhance shareholder value by reducing the number of outstanding shares, potentially boosting earnings per share.
• The authorization of an additional US$1 billion program in 2025 signals a continued commitment to returning capital to shareholders.

Risks

• Changes in the market price of the Company's stock could impact the effectiveness and cost-efficiency of the buyback program.
• General market conditions may affect the timing, volume, and pricing of repurchases.
• Applicable securities laws and regulations could impose restrictions or requirements on buyback activities.
• Alternative investment opportunities might compete for capital that could otherwise be allocated to share repurchases.
• Other risks, uncertainties, and factors detailed in the Company's filings with the Securities and Exchange Commission could materially affect actual results.

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. The company expressly disclaims any obligation to publicly update these forward-looking statements, except as required by law or regulation.

Management Comments

• The Company is authorized to acquire from time to time up to $1 billion in the aggregate of the Company's outstanding shares of Class A common stock and Class B common stock under each of the Repurchase Programs.
• 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 capital allocation strategy employed by mature companies in the media and information services industry to return value to shareholders, optimize capital structure, and signal management's confidence in the company's intrinsic value. News Corporation's continued buyback activity aligns with this trend, aiming to enhance shareholder value amidst evolving market dynamics for media content and digital services.

Comparison to Industry Standards

• News Corporation's commitment to a multi-billion dollar share repurchase program (US$2 billion authorized across two programs) is a significant capital return initiative, comparable to programs seen at other large-cap media conglomerates.
• The stated reason 'to enhance shareholder value' is a standard justification for such programs across the industry, aiming to boost EPS and share price.
• The use of Goldman Sachs & Co. LLC as a broker is a common practice for large-scale corporate buybacks, reflecting standard industry execution methods.

Stakeholder Impact

• Shareholders: Potential for increased earnings per share (EPS) and share price appreciation due to reduced share count, enhancing shareholder value.
• Employees: No direct impact mentioned in the filing.
• Customers: No direct impact mentioned in the filing.
• Suppliers: No direct impact mentioned in the filing.
• Creditors: No direct impact mentioned, as the buyback is funded by existing capital or cash flow, not new debt that would significantly alter credit risk.

Next Steps

• Continue repurchasing Class A and Class B common stock under the authorized programs.
• Provide daily disclosures to the Australian Securities Exchange (ASX) regarding buyback transactions.
• Disclose information concerning the Repurchase Programs in quarterly and annual reports.

Key Dates

Recommendation

The filing details routine daily updates on an ongoing share repurchase program, which is a positive signal for long-term shareholder value. However, it does not present new information that would fundamentally alter the investment thesis or warrant an immediate change in recommendation. The buyback is an expected capital allocation strategy, reinforcing a 'hold' position for investors already in the stock, while not providing a strong catalyst for new 'buy' action based solely on this update.

Keywords

News Corporation, NWSA, NWS, Share Buyback, Stock Repurchase, Capital Return, Shareholder Value, ASX, SEC Filing, Media Company, Goldman Sachs