8-K: News Corp Continues Share Buy-back Programs

News Corporation provides daily updates on its ongoing Class A and Class B common stock repurchase programs, aiming to enhance shareholder value.

Summary

• News Corporation is conducting daily buy-back notifications for its Class A and Class B common stock.
• The company has two active repurchase programs: a 2021 program and a 2025 program, each authorizing up to US$1 billion in share repurchases.
• As of January 14, 2026, the company repurchased 70,004 Class A shares for US$1,866,124.63 on the previous day.
• As of January 14, 2026, the company repurchased 30,471 Class B shares for US$932,851.38 on the previous day.
• Under the 2021 Repurchase Program, approximately US$989,147,027 worth of Class A and Class B shares have been purchased to date, leaving approximately US$10,852,973 remaining under this program.
• The 2025 Repurchase Program has a full US$1 billion authorization remaining.
• The buy-backs are conducted on the open market or otherwise, through Goldman Sachs & Co. LLC.
• The stated reason for the buy-back is to enhance shareholder value.

Sentiment

Score: 7

Explanation: The ongoing share repurchase program signals management's confidence in the company's valuation and its commitment to returning capital to shareholders, which is generally viewed positively by the market.

Positives

• Ongoing share repurchase programs demonstrate management's commitment to returning capital to shareholders.
• The buy-back aims to enhance shareholder value by reducing the number of outstanding shares.
• The company has significant remaining authorization under its 2025 Repurchase Program (US$1 billion) and a small amount left under the 2021 program (approximately US$10.85 million), indicating continued potential for shareholder returns.

Risks

• Actual results may vary materially from forward-looking statements due to changes in the market price of the Company's stock, general market conditions, applicable securities laws, and alternative investment opportunities.
• Risks, uncertainties, and other factors described in the Company's filings with the Securities and Exchange Commission could impact the buy-back 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. The forward-looking statements are made only as of the date of this report, and the company does not undertake any obligation to publicly update them.

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

Share buy-backs are a common capital allocation strategy used by mature companies to return value to shareholders, especially when they believe their stock is undervalued or when they have excess cash flow. This action aligns with broader industry trends of companies optimizing their capital structure and shareholder returns within the media and information services sector.

Comparison to Industry Standards

• News Corporation's ongoing share repurchase program is a standard corporate finance practice, similar to those employed by other large media and information services companies globally.
• Companies like Disney, Paramount Global, and other diversified media conglomerates frequently utilize share buy-backs as part of their capital management strategies to boost EPS and shareholder returns.
• The authorization of up to US$2 billion across two programs (2021 and 2025) is a substantial commitment, indicating confidence in the company's financial health and future prospects, comparable to similar programs seen in well-established industry peers.

Stakeholder Impact

• Shareholders: Potential for increased earnings per share (EPS) and enhanced shareholder value due to a reduced share count. May also support the stock price.

Next Steps

• Continue repurchasing Class A and Class B common stock under the authorized programs.
• Provide daily disclosures to the ASX regarding buy-back transactions.
• Disclose information concerning the Repurchase Programs in quarterly and annual reports.

Key Dates

Recommendation

While share buy-backs are generally positive for shareholder value by reducing share count and potentially boosting EPS, this filing is a routine update on an ongoing program rather than a new, significant announcement. The market has likely already factored in the existence of these buy-back programs. Therefore, a 'hold' recommendation is appropriate, acknowledging the positive capital allocation strategy without suggesting a strong immediate catalyst for a 'buy' based solely on this routine disclosure. Investors should consider broader company fundamentals and market conditions for a more comprehensive investment decision.

Keywords

News Corporation, NWSA, NWS, stock buy-back, share repurchase, capital return, shareholder value, Class A common stock, Class B common stock, ASX notification, Goldman Sachs