8-K: News Corp Updates $2 Billion Stock Buy-Back Program

News Corporation provides an update on its ongoing $2 billion stock repurchase programs for Class A and Class B common stock, detailing recent buy-back activity.

Summary

• News Corporation is actively repurchasing its Class A and Class B common stock under two authorized programs totaling an aggregate of US$2 billion.
• The 2021 Repurchase Program, authorized on September 21, 2021, allows for up to US$1 billion in buy-backs.
• An additional 2025 Repurchase Program, authorized on July 15, 2025, also allows for up to US$1 billion in buy-backs.
• As of September 19, 2025, approximately US$771,690,484 has been spent under the 2021 Repurchase Program.
• On September 19, 2025, 53,756 Class A shares were bought back for US$1,643,906.86, with prices ranging from US$30.38 to US$30.86.
• On September 19, 2025, 23,399 Class B shares were bought back for US$789,451.84, with prices ranging from US$33.53 to US$34.16.
• The buy-backs are conducted in the open market or otherwise, with Goldman Sachs & Co. LLC acting as broker.
• No ASX-listed CDIs are being repurchased under these programs.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive as the company is actively executing its capital allocation strategy to enhance shareholder value through ongoing share repurchases, including a recent additional authorization. This indicates financial health and a commitment to returning capital to investors.

Positives

• The ongoing stock repurchase programs demonstrate a commitment to enhancing shareholder value by returning capital to investors.
• Active capital management through buy-backs can support the company's share price and potentially increase earnings per share by reducing the number of outstanding shares.
• The authorization of an additional US$1 billion program in July 2025 signals continued confidence in the company's financial position and future prospects.

Risks

• Actual results may vary materially from forward-looking statements due to changes in the market price of the company's stock.
• General market conditions, applicable securities laws, and alternative investment opportunities could impact the repurchase programs.
• Other factors described in the company's filings with the Securities and Exchange Commission may also affect outcomes.

Future Outlook

The company intends to continue repurchasing 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 its stock, and other factors. These forward-looking statements are based on management's current expectations and beliefs.

Management Comments

• Management's current expectations and beliefs support the intent to repurchase Class A and Class B common stock from time to time.
• The repurchase programs are intended to enhance shareholder value.

Industry Context

Share repurchase programs are a common capital allocation strategy employed by mature companies to return value to shareholders, often signaling management's belief that the company's stock is undervalued or that it has excess cash flow. This update indicates News Corporation's continued adherence to this strategy, aligning with broader industry trends of prioritizing shareholder returns.

Comparison to Industry Standards

• The filing does not provide specific comparable companies, projects, or results to assess against global benchmarks.

Stakeholder Impact

• Shareholders: Potential benefit from reduced share count, which can lead to increased earnings per share and support share price.
• Investors: Provides transparency on the execution of the company's capital return strategy.

Next Steps

• Continue repurchases of Class A and Class B common stock under the authorized US$2 billion programs, subject to market conditions and other factors.

Key Dates

Recommendation

The filing details the ongoing execution of an authorized share repurchase program, which is generally a positive signal for shareholder value. However, it does not introduce new fundamental information that would significantly alter the investment thesis. For investors already holding the stock, this update confirms continued capital return. For new investors, it reinforces a stable capital management approach, but a 'buy' recommendation would typically require a deeper dive into the company's operational performance and valuation beyond this specific filing.

Keywords

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