8-K: News Corp Expands Share Repurchase Program with Additional $1 Billion Authorization

News Corporation announced an additional $1 billion authorization for its stock repurchase program, bringing the total authorized buyback capacity to $2 billion, aimed at enhancing shareholder value.

Summary

• News Corporation has authorized an additional US$1 billion for its stock repurchase program as of July 15, 2025, bringing the total aggregate authorization to US$2 billion (combining the 2021 and 2025 programs).
• The company intends to repurchase Class A common stock (NWSA) and Class B common stock (NWS) from time to time in the open market or otherwise.
• Under the 2021 Repurchase Program, which was authorized on September 21, 2021, approximately US$701,400,115.60 worth of Class A and Class B shares have been purchased to date.
• On July 25, 2025, 11,527 Class A shares were bought back for US$339,479.37, with prices ranging from US$29.26 to US$29.595.
• On July 25, 2025, 5,773 Class B shares were bought back for US$193,913.34, with prices ranging from US$33.395 to US$33.74.
• The highest price paid for Class A shares was US$30.75 on July 15, 2025, and the lowest was US$14.88 on September 29, 2022.
• The highest price paid for Class B shares was US$35.41 on July 15, 2025, and the lowest was US$15.17 on September 29, 2022.
• The buy-back is being conducted to enhance shareholder value.
• Morgan Stanley & Co. LLC is the broker for the buy-back program.
• No ASX-listed CDIs will be repurchased under these programs.

Sentiment

Score: 8

Explanation: The sentiment is highly positive due to the significant expansion of the stock repurchase program, indicating strong commitment to shareholder value and management's confidence in the company's financial health and valuation.

Positives

• Authorization of an additional US$1 billion for the stock repurchase program demonstrates management's confidence in the company's valuation and commitment to returning capital to shareholders.
• The ongoing repurchase program aims to enhance shareholder value, which is a direct benefit to investors.
• The company has already executed a significant portion of the 2021 repurchase program, having bought back approximately US$701.4 million in shares.

Risks

• Forward-looking statements regarding the intent to repurchase stock are subject to uncertainty and changes in circumstances.
• Actual results of the repurchase program 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 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. This ongoing program is designed to enhance shareholder value.

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 under each of the Repurchase Programs.
• 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 reason for the buy-back is to enhance shareholder value.

Industry Context

Stock repurchase programs are a common capital allocation strategy employed by mature companies with strong cash flows to return value to shareholders. News Corporation's decision to expand its buyback program signals a continued focus on shareholder returns and potentially indicates management's belief that the company's shares are undervalued, or that it has excess capital to deploy. This aligns with a broader trend among established media and information companies to optimize capital structures and enhance shareholder value through buybacks and dividends.

Stakeholder Impact

• Shareholders: Potential for increased earnings per share (EPS) and enhanced shareholder value due to a reduced share count. This signals a commitment to returning capital.
• Employees: No direct impact mentioned.
• Customers: No direct impact mentioned.
• Suppliers: No direct impact mentioned.
• Creditors: No direct impact mentioned, but a strong buyback program can indicate healthy cash flow, which is positive for creditors.

Next Steps

• The company will continue to repurchase Class A and Class B common stock under the expanded US$2 billion authorization.
• Daily disclosures of transactions pursuant to the Repurchase Programs will be provided to the ASX.
• Information concerning the Repurchase Programs will be disclosed in the company's quarterly and annual reports.

Key Dates

Recommendation

The authorization of an additional US$1 billion for the stock repurchase program, bringing the total to US$2 billion, is a strong positive signal. It indicates management's confidence in the company's intrinsic value and its commitment to returning capital to shareholders, which typically leads to increased earnings per share and a more attractive valuation. This move suggests that the company believes its stock is undervalued and that investing in its own shares is a highly effective use of capital, making it an attractive investment for long-term shareholders.

Keywords

News Corporation, Stock Repurchase Program, Share Buyback, NWSA, NWS, Shareholder Value, Capital Allocation, ASX, Nasdaq