8-K: News Corp Expands Share Buyback Program to $2 Billion

News Corporation reports ongoing progress in its Class A and Class B common stock repurchase programs, including recent daily buy-backs and an additional $1 billion authorization.

Summary

• News Corporation is continuing its stock repurchase programs for Class A and Class B common stock.
• The company has two authorized programs: the 2021 Repurchase Program and the 2025 Repurchase Program, each for up to $1 billion in aggregate.
• As of July 15, 2025, an additional $1 billion was authorized under the 2025 Repurchase Program.
• The company intends to repurchase shares from time to time in the open market or otherwise, subject to market conditions and other factors.
• No ASX-listed CDIs will be repurchased in these programs.
• The primary reason for the buy-back is to enhance shareholder value.
• Goldman Sachs & Co. LLC is the designated broker for the buy-back activities.
• As of August 14, 2025, approximately $718,079,921 worth of Class A and Class B shares have been purchased under the 2021 Repurchase Program.
• On August 14, 2025, 56,213 Class A shares were bought back for a total consideration of $1,674,815.74, with prices ranging from $29.36 to $29.97.
• On August 14, 2025, 24,469 Class B shares were bought back for a total consideration of $840,400.04, with prices ranging from $34.03 to $34.55.
• Prior to August 14, 2025, a total of 22,771,121 Class A shares were bought back for $473,281,404, with the highest price paid at $30.75 (July 15, 2025) and the lowest at $14.88 (September 29, 2022).
• Prior to August 14, 2025, a total of 11,244,989 Class B shares were bought back for $242,283,301, with the highest price paid at $35.41 (July 15, 2025) and the lowest at $15.17 (September 29, 2022).

Sentiment

Score: 8

Explanation: The ongoing and expanded share repurchase program is a strong positive signal for shareholders, indicating management's commitment to returning capital and potentially boosting per-share metrics.

Positives

• The company is actively repurchasing its Class A and Class B common stock, demonstrating a commitment to returning value to shareholders.
• An additional $1 billion authorization for the 2025 Repurchase Program signals continued confidence in the company's financial health and capacity for shareholder returns.
• The stated reason for the buy-back is to enhance shareholder value, which is a positive signal for investors.

Risks

• Actual results of the repurchase programs may vary materially from expectations due to changes in the market price of the company's stock.
• General market conditions could impact the effectiveness and execution of the buyback programs.
• Applicable securities laws and alternative investment opportunities may influence the company's ability or decision to continue repurchases.
• Other risks, uncertainties, and factors described in the company's filings with the Securities and Exchange Commission could affect the programs.

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, the market price of the company's stock, applicable securities laws, and alternative investment opportunities.

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.

Industry Context

Share buybacks are a common capital allocation strategy employed by mature companies to return value to shareholders and can signal management's belief that the stock is undervalued. This action aligns with broader market trends where companies with strong cash flows opt for buybacks to optimize capital structure and boost earnings per share.

Comparison to Industry Standards

• Many large media and information services companies, such as Disney, Paramount Global, and Fox Corporation, regularly engage in share repurchase programs to manage capital and enhance shareholder returns.
• News Corporation's aggregate $2 billion authorization (across two programs) is a substantial commitment, comparable to similar programs seen in established industry players aiming to reduce share count and improve per-share metrics.
• The use of Goldman Sachs & Co. LLC as a broker is standard practice for large-scale corporate buybacks, ensuring efficient execution in the open market.

Stakeholder Impact

• Shareholders: Positive impact due to reduced share count, potential for increased earnings per share, and enhanced shareholder value.
• Employees: No direct impact mentioned.
• Customers: No direct impact mentioned.
• Suppliers: No direct impact mentioned.
• Creditors: No direct impact mentioned.

Next Steps

• Continue repurchasing Class A and Class B common stock under the authorized 2021 and 2025 Repurchase Programs.
• Provide daily disclosure of transactions to the Australian Securities Exchange (ASX) if any repurchases occur.
• Disclose information concerning the Repurchase Programs in quarterly and annual reports to the SEC.

Key Dates

Recommendation

The company's commitment to an ongoing and expanded share repurchase program, totaling $2 billion in authorization, suggests management views the current stock price as an attractive investment. This action typically reduces the number of outstanding shares, which can lead to higher earnings per share and a more favorable valuation, making it an appealing opportunity for investors.

Keywords

News Corporation, NWSA, NWS, stock repurchase, share buyback, capital return, shareholder value, Class A common stock, Class B common stock, ASX, Nasdaq