8-K: News Corp Continues Share Repurchase Program, Nearing $700 Million Mark

News Corporation has provided an update on its ongoing $1 billion stock repurchase program, detailing recent buy-back activities for both Class A and Class B common stock.

Summary

• News Corporation is continuing its previously authorized stock repurchase program, which allows for the acquisition of up to $1 billion of its outstanding Class A and Class B common stock.
• The program aims to enhance shareholder value through open market repurchases.
• As of June 16, 2025, the company has repurchased approximately US$685,683,932.03 worth of Class A and Class B shares combined.
• On June 16, 2025, News Corp bought back 12,327 shares of Class A common stock for US$346,046.01, with prices ranging from US$27.57 to US$28.275.
• On the same day, 6,173 shares of Class B common stock were repurchased for US$198,426.76, at prices between US$31.605 and US$32.29.
• The total number of Class A shares bought back to date is 22,119,408, and Class B shares is 10,920,838.
• 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.
• For Class B shares, the highest price paid was US$35.25 on February 19, 2025, and the lowest was US$15.17 on September 29, 2022.
• The remaining authorization under the $1 billion program is approximately US$314,316,067.97.

Sentiment

Score: 7

Explanation: The document reports on an ongoing share repurchase program, which is generally a positive signal for shareholders as it indicates capital return and management's confidence in the company's valuation. There are no negative surprises or new risks introduced, making the sentiment moderately positive.

Positives

• The ongoing share repurchase program demonstrates the company's commitment to returning capital to shareholders.
• The buy-back is intended to enhance shareholder value, which is generally viewed positively by investors.
• The company has significant remaining authorization (approximately US$314 million) under the $1 billion program, indicating continued potential for capital return.

Risks

• Forward-looking statements regarding the repurchase program are subject to uncertainty and changes in circumstances.
• Actual results may vary materially due to factors such as changes in the market price of the Company's stock, general market conditions, applicable securities laws, and alternative investment opportunities.
• The company does not undertake any obligation to publicly update forward-looking statements, except as required by law or regulation.

Future Outlook

News Corporation intends to continue repurchasing its Class A and Class B common stock from time to time in the open market or otherwise, subject to market conditions and the market price of the Company's stock, as well as other factors. The company does not undertake to publicly update these forward-looking statements.

Management Comments

• "The Company is authorized to acquire from time to time up to $1 billion in the aggregate of the Company's outstanding shares of Class A common stock and Class B common stock."
• "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 securities are being bought back to enhance shareholder value."

Industry Context

Share repurchase programs are a common capital allocation strategy employed by mature companies to return value to shareholders, reduce share count, and potentially boost earnings per share. News Corporation's continued buyback activity aligns with broader industry trends where companies with strong cash flows and limited immediate high-return investment opportunities opt for share repurchases.

Comparison to Industry Standards

• News Corporation's $1 billion share repurchase program is a significant capital allocation strategy, comparable to similar programs undertaken by other large media and information services companies.
• While specific comparable companies or projects are not detailed in the filing, share buybacks are a standard practice across various industries, including media conglomerates like Paramount Global or Warner Bros. Discovery, which also engage in capital return strategies to manage shareholder value.
• The use of an 'Other buy-back' type, as described, is typical for entities established outside Australia (like News Corp, incorporated in Delaware) when reporting to the ASX, indicating compliance with dual listing requirements rather than a unique program structure.

Stakeholder Impact

• Shareholders: Potential for enhanced shareholder value through reduced share count and improved earnings per share.
• Investors: Provides transparency on the execution of the capital allocation strategy.

Next Steps

• News Corporation will continue to provide daily disclosure of transactions under the Repurchase Program to the Australian Securities Exchange (ASX), if any.
• The Company will also disclose information concerning the Repurchase Program in its quarterly and annual reports.

Key Dates

Recommendation

Keywords

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