8-K: News Corporation Continues $1 Billion Stock Repurchase Program

News Corporation discloses daily buy-back activity to the ASX as part of its ongoing $1 billion stock repurchase program.

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 providing daily disclosures to the Australian Securities Exchange (ASX) regarding transactions under this program.
• As of February 24, 2025, News Corporation has already spent approximately $640.5 million on repurchasing its Class A and Class B shares.
• The buy-backs are conducted through Morgan Stanley & Co. LLC.
• The company repurchased 12,993 Class A shares for $370,926.76 and 6,507 Class B shares for $211,336.95 on February 24, 2025.
• The highest price paid for Class A shares was $30.69 on February 19, 2025, and the lowest price paid was $14.88 on September 29, 2022.
• The highest price paid for Class B shares was $35.25 on February 19, 2025, and the lowest price paid was $15.17 on September 29, 2022.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The announcement confirms the continuation of a shareholder-friendly buyback program, but also includes standard disclaimers about market conditions and forward-looking statements.

Positives

• The stock repurchase program aims to enhance shareholder value.
• The company has already spent a significant portion of the authorized amount, indicating a commitment to the program.
• Daily disclosures to the ASX provide transparency to investors.

Risks

• The company's ability to repurchase shares is subject to market conditions, stock price, and applicable securities laws.
• Alternative investment opportunities could impact the repurchase program.
• Forward-looking statements regarding the repurchase program are subject to uncertainty and may not materialize.

Future Outlook

The company intends to continue repurchasing its Class A and Class B common stock, subject to market conditions and other factors.

Industry Context

Stock repurchase programs are a common way for companies to return capital to shareholders, signaling confidence in the company's financial health and future prospects. News Corporation's program is consistent with this trend.

Comparison to Industry Standards

• Comparable companies like Twenty-First Century Fox (before its acquisition by Disney) and other large media conglomerates have also utilized stock repurchase programs to manage their capital structure and enhance shareholder returns.
• The size of News Corporation's buyback program, at $1 billion, is within the range of similar programs announced by other large-cap companies.
• The daily reporting to the ASX is a requirement specific to that exchange and provides a higher level of transparency than is typically seen in US markets.

Stakeholder Impact

• Shareholders may benefit from the increased share value due to the repurchase program.
• The repurchase program demonstrates the company's confidence in its financial position.

Next Steps

• The company will continue to provide daily buy-back notifications to the ASX.
• The company will continue to repurchase shares, subject to market conditions and other factors.

Key Dates