8-K: News Corp Continues Share Repurchase Program, Nearing $679 Million in Buybacks

News Corporation announced the ongoing execution of its $1 billion stock repurchase program, having acquired approximately $679 million in Class A and Class B common stock to date.

Summary

• News Corporation is continuing its previously announced stock repurchase program, authorized to acquire up to an aggregate of US$1 billion of its outstanding Class A and Class B common stock.
• As of May 29, 2025, the company has repurchased approximately US$678,872,124.05 worth of Class A and Class B shares under the program.
• On May 29, 2025, News Corp bought back 12,327 Class A shares for US$347,861.78 and 6,173 Class B shares for US$202,135.50.
• The total number of Class A shares bought back to date is 21,964,293 (21,951,966 before May 29, 2025, plus 12,327 on May 29, 2025).
• The total number of Class B shares bought back to date is 10,843,153 (10,836,980 before May 29, 2025, plus 6,173 on May 29, 2025).
• The highest price paid for Class A shares was US$30.69 (on February 19, 2025) and the lowest was US$14.88 (on September 29, 2022).
• The highest price paid for Class B shares was US$35.25 (on February 19, 2025) and the lowest was US$15.17 (on September 29, 2022).
• The buy-back program is intended to enhance shareholder value and is conducted through open market or other transactions.
• Morgan Stanley & Co. LLC is the broker facilitating the buy-back of securities.

Sentiment

Score: 7

Explanation: The document reports on an ongoing stock repurchase program, which is generally viewed positively by investors as it indicates a commitment to returning capital to shareholders and can enhance shareholder value. There are no negative financial or operational updates.

Positives

• The ongoing stock repurchase program demonstrates the company's commitment to returning capital to shareholders.
• The buy-back is explicitly stated to be for the purpose of enhancing shareholder value.
• The company has utilized a significant portion of its authorized US$1 billion buy-back program, indicating active capital management.

Risks

• Forward-looking statements regarding the repurchase program are subject to uncertainty and changes in circumstances, including market price fluctuations, general market conditions, applicable securities laws, and alternative investment opportunities.
• Actual results may vary materially from expressed or implied statements due to factors described in the Company's SEC filings.

Future Outlook

The Company intends to continue repurchasing its Class A and Class B common stock from time to time, subject to market conditions and the market price of its stock, as well as other factors. The forward-looking statements are made only as of the report date, and the Company does not undertake any obligation to publicly update them, except as required by law.

Management Comments

• Management's current expectations and beliefs indicate an intent to repurchase Class A and Class B common stock from time to time.
• The repurchase program is aimed at enhancing shareholder value.

Industry Context

Stock repurchase programs are a common capital allocation strategy employed by mature companies in various industries, including media and publishing, to return value to shareholders. By reducing the number of outstanding shares, buybacks can potentially increase earnings per share (EPS) and improve valuation metrics, signaling management's confidence in the company's financial health and future prospects. News Corp's ongoing program aligns with this broader trend of companies utilizing excess cash flow to optimize their capital structure and enhance shareholder returns.

Stakeholder Impact

• Shareholders: Potential positive impact through increased earnings per share (EPS) and enhanced shareholder value due to a reduced share count.
• Investors: Provides transparency on the company's capital allocation strategy and ongoing commitment to returning capital.

Next Steps

• News Corporation will continue to acquire Class A and Class B common stock from time to time under the authorized US$1 billion repurchase program.
• The Company will continue to provide daily disclosures to the Australian Securities Exchange (ASX) regarding transactions under the Repurchase Program.
• Information concerning the Repurchase Program will also be disclosed in the Company's quarterly and annual reports.

Key Dates

Recommendation

Keywords

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