8-K: News Corp Continues Share Repurchase Program, Discloses Daily Buy-Back Activity to ASX

News Corporation has disclosed its daily share buy-back activity to the Australian Securities Exchange (ASX) as part of its ongoing $1 billion repurchase program.

Summary

• News Corporation is actively repurchasing its Class A and Class B common stock as part of a previously announced program.
• The company is authorized to repurchase up to $1 billion worth of its shares.
• Daily buy-back information is being provided to the Australian Securities Exchange (ASX) as required.
• As of the latest disclosure, News Corp has spent approximately $583,024,543.84 on share repurchases.
• The buy-backs are conducted in the open market or otherwise, subject to market conditions and the company's stock price.
• The company is using BofA Securities, Inc. as its broker for the on-market buy-backs.
• The company has repurchased 19,733,610 Class A shares for $388,115,066.30 and 9,727,256 Class B shares for $194,294,506.48 before the previous day.
• On the previous day, the company repurchased 15,261 Class A shares for $400,691.29 and 7,763 Class B shares for $214,279.76.

Sentiment

Score: 7

Explanation: The sentiment is positive as the company is actively repurchasing shares, which is generally viewed favorably by investors. However, the program is subject to market conditions, which introduces some uncertainty.

Positives

• The share repurchase program demonstrates management's confidence in the company's value.
• The buy-back program aims to enhance shareholder value.
• The company is actively returning capital to shareholders through the buy-back program.

Risks

• The repurchase program is subject to market conditions and the company's stock price.
• Changes in market conditions or the company's stock price could impact the pace and extent of the buy-back program.
• The company's ability to repurchase shares is also subject to applicable securities laws and alternative investment opportunities.

Future Outlook

The company intends to continue repurchasing shares from time to time, subject to market conditions and other factors, but has no obligation to update forward-looking statements.

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 buy-back programs are a common method for companies to return capital to shareholders and can be seen as a sign of confidence in the company's future prospects. This is a common practice among large cap companies.

Comparison to Industry Standards

• Many large media companies, such as Paramount Global (PARA) and Warner Bros. Discovery (WBD), have also engaged in share repurchase programs to enhance shareholder value.
• The size of News Corp's buyback program, at $1 billion, is comparable to other large media companies, although the specific amounts and timing vary based on individual company strategies and financial positions.
• The use of BofA Securities as a broker is also a common practice among large companies for executing share buybacks.

Stakeholder Impact

• Shareholders may benefit from the increased value of their shares due to the buy-back program.
• The buy-back program may also signal confidence in the company's future prospects to other stakeholders.

Next Steps

• The company will continue to repurchase shares as market conditions allow.
• The company will continue to provide daily updates to the ASX regarding buy-back activity.

Key Dates

Keywords

share repurchase, stock buyback, News Corporation, ASX, NWSA, NWS, Class A common stock, Class B common stock, BofA Securities, shareholder value