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

News Corporation announced ongoing progress in its $2 billion stock repurchase programs, acquiring additional Class A and Class B common stock to enhance shareholder value.

Summary

• News Corporation is continuing its stock repurchase programs for Class A common stock (NWSA) and Class B common stock (NWS).
• The company has two active programs: a 2021 program authorized for up to US$1 billion and a 2025 program authorized for an additional US$1 billion, totaling US$2 billion in authorized repurchases.
• As of August 28, 2025, approximately US$743,017,712 has been spent under the 2021 Repurchase Program.
• This leaves approximately US$256,982,288 remaining under the 2021 program and the full US$1 billion under the 2025 program, for a total of US$1,256,982,288 in remaining buyback capacity.
• On August 28, 2025, 56,213 Class A shares were bought back for US$1,655,826.99, with prices ranging from US$29.375 to US$30.015.
• On the same day, 24,469 Class B shares were bought back for US$831,576.52, with prices ranging from US$33.89 to US$34.47.
• The buybacks are conducted in the open market or otherwise, through Goldman Sachs & Co. LLC, and are intended to enhance shareholder value.
• No ASX-listed CDIs will be repurchased in these programs.

Sentiment

Score: 7

Explanation: The filing indicates a continued commitment to returning capital to shareholders through an active stock repurchase program with significant remaining capacity, which is generally viewed positively. However, it is a routine update on an ongoing program rather than a new, impactful announcement.

Positives

• Ongoing commitment to returning capital to shareholders through active stock repurchase programs.
• Significant remaining capacity of approximately US$1.26 billion across two programs (US$256.98 million from the 2021 program and US$1 billion from the 2025 program).
• Repurchases aim to enhance shareholder value by reducing the number of outstanding shares.

Negatives

• The exact price to be paid for future repurchases is not known in advance, as it is subject to market conditions.
• No specific negative operational or financial news was disclosed in this routine update.

Risks

• Actual results of the repurchase program may vary materially due to changes in the market price of the Company's stock.
• General market conditions could impact the effectiveness and execution of the buyback program.
• Applicable securities laws and alternative investment opportunities may influence the program's pace and extent.
• Other risks, uncertainties, and factors described in the Company's filings with the Securities and Exchange Commission could 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, stock price, and other factors, under its two authorized programs totaling US$2 billion.

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

Stock repurchase programs are a common capital allocation strategy employed by mature companies to return value to shareholders, signal confidence in the company's valuation, and potentially boost earnings per share. News Corporation's ongoing program aligns with broader industry practices for established media and information services companies.

Comparison to Industry Standards

• Many large-cap media and information companies, such as Comcast (CMCSA) or Thomson Reuters (TRI), regularly engage in share buybacks as part of their capital management strategies, often aiming to optimize capital structure and enhance shareholder returns.
• The scale of News Corporation's US$2 billion program is substantial, comparable to similar programs seen from peers with strong cash flows, indicating a healthy financial position and commitment to shareholder value.
• The use of Goldman Sachs & Co. LLC as a broker for the buyback is standard practice for large public companies executing such programs.

Stakeholder Impact

• Shareholders: Potential for increased earnings per share and enhanced share value due to reduced outstanding shares. Those holding Class A and Class B common stock benefit directly from the buyback.
• Investors: Provides a signal of management's confidence in the company's valuation and commitment to capital return.

Next Steps

• Continue repurchasing Class A and Class B common stock in the open market or otherwise, subject to market conditions.
• 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 to the SEC.

Key Dates

Recommendation

This filing is a routine update on an ongoing stock repurchase program. While the continued buyback activity and significant remaining capacity are positive for shareholder value, it does not present new information that would fundamentally alter the investment thesis for News Corporation. Therefore, a 'hold' recommendation is appropriate for investors who already have a position, as the company continues its capital allocation strategy as expected.

Keywords

News Corporation, Stock Buyback, Share Repurchase, Class A Common Stock, Class B Common Stock, NWSA, NWS, Capital Allocation, Shareholder Value, ASX Notification