8-K: News Corporation Continues Share Repurchase Program, Disclosing Daily Transactions to ASX

News Corporation reports continued activity in its stock repurchase program, disclosing daily transaction details to the Australian Securities Exchange (ASX) as required.

Summary

• News Corporation is continuing its stock repurchase program, authorized to buy back up to $1 billion of Class A and Class B common stock.
• The company is providing daily disclosures to the ASX regarding these transactions.
• As of February 28, 2025, the company has repurchased a total of 21,106,263 Class A shares before the previous day and 12,993 on the previous day.
• The total consideration paid for Class A shares was US$426,707,593.06 before the previous day and US$366,302.55 on the previous day.
• For Class B shares, the company repurchased 10,413,421 before the previous day and 6,507 on the previous day.
• The total consideration paid for Class B shares was US$215,545,605.15 before the previous day and US$207,784.13 on the previous day.
• The highest price paid for Class A shares was US$30.69 on February 19, 2025, and the lowest price paid was US$14.88 on September 29, 2022.
• The highest price paid for Class B shares was US$35.25 on February 19, 2025, and the lowest price paid was US$15.17 on September 29, 2022.
• As of the end of February 28, 2025, approximately US$642,827,284.89 worth of Class A and Class B shares have been purchased under the program.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The company is continuing its share repurchase program, which is generally viewed favorably by investors as it can increase earnings per share and signal management's confidence in the company's future.

Positives

• The share repurchase program aims to enhance shareholder value.
• The company is actively returning capital to shareholders through buybacks.
• The disclosures provide transparency to the market regarding the buyback activity.

Risks

• The company's ability to repurchase shares is subject to market conditions, stock price, and other factors.
• Changes in securities laws or alternative investment opportunities could impact the repurchase program.
• The forward-looking statements regarding the repurchase program are subject to uncertainty and may not be realized.

Future Outlook

The company intends to continue repurchasing shares from time to time, subject to market conditions and other factors.

Industry Context

Share repurchase programs are a common way for companies to return capital to shareholders, especially when they believe their stock is undervalued.

Comparison to Industry Standards

• Comparing News Corporation's buyback program to similar media companies like Paramount Global or Warner Bros. Discovery, the size of the program is substantial relative to their market capitalization.
• Many companies use share buybacks to offset dilution from employee stock options or to signal confidence in the company's future prospects.
• The disclosure to the ASX is a specific requirement due to the company's listing there, providing more transparency than might be typical for a US-only listed company.

Stakeholder Impact

• Shareholders may benefit from the increased earnings per share resulting from the share repurchase program.
• The buyback program could provide support for the company's stock price.

Key Dates