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

News Corporation announced ongoing share repurchases under its $2 billion stock buyback programs for Class A and Class B common stock, aiming to enhance shareholder value.

Summary

• News Corporation is continuing its stock repurchase programs for Class A and Class B common stock.
• The company has two authorized programs: a 2021 Repurchase Program and a 2025 Repurchase Program, each for up to $1 billion, totaling $2 billion in aggregate authorization.
• As of December 16, 2025, the company repurchased 72,000 Class A shares for $1,862,769.60 on that day.
• As of December 16, 2025, the company repurchased 31,304 Class B shares for $916,552.95 on that day.
• To date, approximately $936,678,007 worth of Class A and Class B shares have been purchased under the 2021 Repurchase Program.
• The buy-back is conducted in the open market or otherwise, through Goldman Sachs & Co. LLC.
• The primary reason for the buy-back is to enhance shareholder value.

Sentiment

Score: 7

Explanation: The ongoing share repurchase program is a positive signal for shareholders, indicating management's commitment to returning capital and confidence in the company's valuation. However, this is a routine update on an existing program rather than a new, unexpected positive development.

Positives

• The ongoing share repurchase programs demonstrate management's commitment to returning capital to shareholders.
• The authorization of an additional $1 billion under the 2025 Repurchase Program indicates confidence in the company's financial position and future prospects.
• Repurchasing shares can reduce the number of outstanding shares, potentially increasing earnings per share (EPS) and shareholder value.

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.
• Applicable securities laws and alternative investment opportunities may influence the program.
• Other risks, uncertainties, and factors described in the company's SEC filings 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, applicable securities laws, and alternative investment opportunities, under its authorized $2 billion repurchase programs.

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."
• "These statements are based on management's current expectations and beliefs and are subject to uncertainty and changes in circumstances."

Industry Context

Share repurchase programs are a common strategy employed by mature companies in the media and information services industry, like News Corporation, to return capital to shareholders and signal confidence in the company's valuation. Such programs can help support stock prices and improve earnings per share, particularly in periods of stable cash flow or when management believes the stock is undervalued. This ongoing program aligns with broader industry practices for capital allocation.

Comparison to Industry Standards

• News Corporation's $2 billion share repurchase authorization is a substantial capital allocation, comparable to similar programs by other large media conglomerates. For instance, companies like Disney or Paramount Global frequently engage in multi-billion dollar buybacks to manage capital and enhance shareholder returns.
• The stated reason 'To enhance shareholder value' is a standard justification for such programs across industries, aiming to improve per-share metrics and demonstrate financial strength.
• The use of Goldman Sachs & Co. LLC as a broker for the buyback is a common practice for large-cap companies executing significant repurchase programs, ensuring efficient market execution.

Stakeholder Impact

• Shareholders: Potential for increased earnings per share and stock price appreciation due to reduced share count, enhancing shareholder value.

Next Steps

• Continue repurchasing Class A and Class B common stock under the authorized $2 billion 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 filed with the SEC.

Key Dates

Recommendation

This filing provides a routine update on News Corporation's ongoing share repurchase program. While buybacks are generally positive for shareholder value by reducing share count and potentially boosting EPS, this specific announcement does not introduce new information that would fundamentally alter the investment thesis or warrant a change in recommendation. The program is proceeding as expected, and the market has likely already factored in the existing authorization. Therefore, a 'hold' recommendation is appropriate, maintaining current positions based on broader company fundamentals and market conditions.

Keywords

News Corporation, Stock Buyback, Share Repurchase, Class A Common Stock, Class B Common Stock, NWSA, NWS, ASX, SEC Filing, Corporate Action, Shareholder Value