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

News Corporation announced its ongoing share repurchase program, having acquired approximately $693.85 million of its Class A and Class B common stock out of a $1 billion authorization.

Summary

• News Corporation is executing a stock repurchase program authorized for up to an aggregate of $1 billion of its outstanding Class A and Class B common stock.
• As of July 9, 2025, the company has repurchased approximately $693,847,401.63 worth of Class A and Class B shares combined.
• On July 9, 2025, the company repurchased 11,527 shares of Class A common stock for $338,893.80, with prices ranging from $29.28 to $29.57.
• On July 9, 2025, the company repurchased 5,773 shares of Class B common stock for $196,633.58, with prices ranging from $33.96 to $34.19.
• The total number of Class A shares bought back before July 9, 2025, was 22,284,785 for a total consideration of $459,102,186.67.
• The total number of Class B shares bought back before July 9, 2025, was 11,010,902 for a total consideration of $234,406,321.16.
• The buy-back program is conducted in the open market or otherwise, subject to market conditions and stock price.
• No ASX-listed CDIs are being repurchased under this program.

Sentiment

Score: 7

Explanation: The sentiment is positive as the company is actively executing its share repurchase program, which is intended to enhance shareholder value. This indicates financial stability and a commitment to returning capital to shareholders. The update is routine and expected, reflecting consistent progress.

Positives

• The ongoing share repurchase program aims to enhance shareholder value.
• The company is actively returning capital to shareholders through buybacks.
• The program is progressing steadily towards its $1 billion authorization limit, indicating consistent execution.

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, applicable securities laws, and alternative investment opportunities.
• Forward-looking statements regarding the intent to repurchase are subject to uncertainty and changes in circumstances.
• The company does not undertake any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances, except as required by law or regulation.

Future Outlook

The company 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 its stock, as well as other factors. The company does not undertake any obligation to publicly update these forward-looking statements.

Management Comments

• The company's intent is to repurchase, from time to time, the company's Class A common stock and Class B common stock.

Industry Context

This announcement reflects News Corporation's ongoing commitment to capital management and shareholder returns, a common practice among mature media and information services companies. Share buybacks are often employed to optimize capital structure, enhance earnings per share, and signal management's confidence in the company's valuation, aligning with broader trends in the industry where companies with strong cash flows look to return value to shareholders.

Comparison to Industry Standards

• News Corporation's $1 billion share repurchase program is a significant capital allocation initiative, comparable in scale to similar programs undertaken by other large diversified media and information companies such as Thomson Reuters (TRI) or RELX (RELX), which also regularly engage in share buybacks to manage capital and enhance shareholder value.
• The stated reason for the buyback, 'to enhance shareholder value,' is a standard justification across the industry, reflecting a common corporate finance objective.
• The use of Morgan Stanley & Co. LLC as the broker for the buyback is consistent with practices of major corporations utilizing leading financial institutions for such transactions.

Stakeholder Impact

• Shareholders: Potential for enhanced shareholder value through reduced share count and improved earnings per share.
• Investors: Provides transparency on the ongoing capital allocation strategy and management's confidence in the company's valuation.

Next Steps

• News Corporation will continue to acquire shares under its $1 billion stock repurchase program.
• The company will provide daily disclosures of transactions to the Australian Securities Exchange (ASX) if any repurchases occur.
• Information concerning the Repurchase Program will also be disclosed in the company's quarterly and annual reports filed with the SEC.

Key Dates

Recommendation

Keywords

Share Repurchase Program, Stock Buyback, Capital Allocation, Shareholder Value, Class A Common Stock, Class B Common Stock, Nasdaq, ASX, News Corporation