8-K: News Corp Provides Update on $1 Billion Share Repurchase Program

News Corporation has provided an update on its ongoing share repurchase program, disclosing daily buy-back activity to the Australian Securities Exchange.

Summary

• News Corporation is executing a stock repurchase program, authorized to buy back up to $1 billion of its Class A and Class B common stock.
• The company is required to disclose daily buy-back transactions to the Australian Securities Exchange (ASX).
• As of December 17, 2024, the company has spent approximately $613.12 million on share repurchases.
• The buy-backs are conducted on the open market through BofA Securities, Inc.
• The company has repurchased 20,430,428 Class A shares for $407,648,203.06 and 10,075,269 Class B shares for $204,834,092.85 before the previous day.
• On the previous day, the company repurchased 14,459 Class A shares for $411,549.41 and 7,241 Class B shares for $226,174.08.
• The highest price paid for Class A shares was $30.01 on November 8, 2024, and the lowest was $14.88 on September 29, 2022.
• The highest price paid for Class B shares was $32.80 on December 3, 2024, and the lowest was $15.17 on September 29, 2022.

Sentiment

Score: 7

Explanation: The sentiment is positive as the company is actively returning capital to shareholders through a share repurchase program. The program is ongoing and within the previously announced parameters.

Positives

• The share repurchase program demonstrates management's confidence in the company's value.
• The buy-back program aims to enhance shareholder value.
• The company is actively returning capital to shareholders through the repurchase program.

Risks

• The company's ability to continue the buy-back program is subject to market conditions and the price of its stock.
• Changes in market conditions, securities laws, or alternative investment opportunities could impact the program.
• The company's forward-looking statements regarding the buy-back program are subject to uncertainty.

Future Outlook

The company intends to continue repurchasing shares from time to time, subject to market conditions and other factors, but has no obligation to update forward-looking statements.

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.
• The reason for the buy-back is to enhance shareholder value.

Industry Context

Share repurchase programs are a common method for companies to return capital to shareholders and can be seen as a sign of management's confidence in the company's future prospects. This is a common practice among large cap companies.

Comparison to Industry Standards

• Many large media companies such as Paramount Global, Warner Bros. Discovery, and Fox Corporation have also engaged in share repurchase programs to enhance shareholder value.
• The size of News Corp's buyback program at $1 billion is comparable to other large media companies.
• The use of on-market buy-backs through brokers like BofA Securities is a standard practice in the industry.

Stakeholder Impact

• Shareholders may benefit from the increased value of their shares due to the buy-back program.
• The buy-back program may positively impact investor confidence in the company.

Next Steps

• The company will continue to repurchase shares as market conditions allow.
• The company will continue to provide daily updates to the ASX regarding buy-back activity.

Key Dates

Keywords

share repurchase, stock buyback, News Corporation, NWSA, NWS, ASX, BofA Securities, Class A common stock, Class B common stock