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

News Corporation announced continued activity under its existing $2 billion share repurchase programs for Class A and Class B common stock, aiming to enhance shareholder value.

Summary

• News Corporation is authorized to acquire up to an aggregate of US$1 billion of its Nasdaq-listed Class A common stock and Class B common stock under the 2021 Repurchase Program, authorized on September 21, 2021.
• An additional US$1 billion has been authorized under the 2025 Repurchase Program as of July 15, 2025.
• The company intends to repurchase shares from time to time in the open market or otherwise, subject to market conditions and the market price of its stock.
• On January 5, 2026, the company bought back 70,004 Class A common shares for US$1,844,633.40.
• On January 5, 2026, the company bought back 30,471 Class B common shares for US$915,077.65.
• To date, under the 2021 Repurchase Program, the company has purchased approximately US$969,717,695 worth of Class A and Class B shares.
• The total number of Class A common stock on issue is 370,544,524, and Class B common stock is 142,486,569.
• The buyback is for cash consideration, and the specific price to be paid for future repurchases is not known in advance.
• Goldman Sachs & Co. LLC is the broker facilitating the buyback.

Sentiment

Score: 7

Explanation: The ongoing share repurchase program is a positive signal of management's confidence and commitment to returning value to shareholders, although it's a routine update rather than a new initiative. It aligns with previously communicated capital allocation strategies.

Positives

• Ongoing share repurchase programs totaling $2 billion demonstrate a commitment to returning capital to shareholders.
• The buyback aims to enhance shareholder value by reducing the number of outstanding shares.
• A significant portion of the 2021 Repurchase Program (approximately US$969.7 million out of US$1 billion) has been utilized, indicating active capital management.

Risks

• Changes in the market price of the Company's stock could impact the effectiveness and cost of the buyback program.
• General market conditions may affect the timing and execution of share repurchases.
• Applicable securities laws could impose restrictions or requirements on the buyback activities.
• Alternative investment opportunities might compete for capital that could otherwise be used for share repurchases.
• Other risks, uncertainties, and factors described in the Company's filings with the Securities and Exchange Commission could affect the company's operations and financial performance.

Future Outlook

The company intends to repurchase Class A and Class B common stock from time to time in the open market or otherwise, subject to market conditions and the market price of the company's stock, as well as other factors. The company does not undertake any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances, except as required by law or regulation.

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 reason for the buy-back is to enhance shareholder value.

Industry Context

NA

Stakeholder Impact

• Shareholders: Potential for increased earnings per share and enhanced shareholder value due to reduced share count, signaling management's confidence in the company's valuation.
• Investors: Provides transparency on the company's capital management activities and commitment to shareholder returns.

Next Steps

• Continue repurchasing Class A and Class B common stock under the authorized programs, subject to market conditions and other factors.

Key Dates

Recommendation

The filing provides an update on ongoing share repurchase programs, which is generally a positive signal for shareholder value. However, it does not introduce new strategic initiatives or significant financial performance data that would warrant a change in investment recommendation. The buyback activity is consistent with previously announced plans, suggesting a 'hold' position is appropriate unless other fundamental factors change.

Keywords

News Corporation, NWSA, NWS, Share Buyback, Stock Repurchase, Capital Return, Shareholder Value, SEC Filing, 8-K, Class A Common Stock, Class B Common Stock, Nasdaq