8-K: News Corporation Updates on $1 Billion Stock Repurchase Program, Nearing Two-Thirds Completion

News Corporation has provided an update on its ongoing $1 billion stock repurchase program, detailing recent Class A and Class B common stock acquisitions and the remaining authorization.

Summary

• News Corporation is authorized to acquire up to an aggregate of $1 billion of its outstanding Class A common stock (NWSA) and Class B common stock (NWS) under its Repurchase Program.
• As of June 30, 2025, News Corporation has purchased approximately $690,585,308.71 worth of Class A and Class B shares under the program.
• For Class A common stock, 11,527 shares were bought back on June 30, 2025, for a total consideration of $341,849.32, with prices ranging from $29.50 to $29.82.
• Prior to June 30, 2025, 22,215,623 Class A shares were repurchased for $457,054,718.29.
• For Class B common stock, 5,773 shares were bought back on June 30, 2025, for a total consideration of $197,256.48, with prices ranging from $33.92 to $34.425.
• Prior to June 30, 2025, 10,969,023 Class B shares were repurchased for $232,991,484.62.
• The highest price paid for Class A shares was $30.69 on February 19, 2025, and the lowest 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 was $15.17 on September 29, 2022.
• The total number of Class A common stock on issue is 375,408,632, and Class B common stock on issue is 153,129,748.
• The buy-back program is conducted to enhance shareholder value and does not require security holder approval or have restrictions on foreign participation.

Sentiment

Score: 7

Explanation: The ongoing execution of a significant stock repurchase program is generally viewed positively by investors as it indicates management's confidence in the company's valuation and commitment to returning capital to shareholders, which can enhance shareholder value.

Positives

• The ongoing stock repurchase program aims to enhance shareholder value by reducing the number of outstanding shares.
• The company has already executed a significant portion of its $1 billion authorization, demonstrating commitment to returning capital to shareholders.
• The buyback is being conducted for cash consideration, providing direct value to selling shareholders.

Risks

• Forward-looking statements regarding the intent to repurchase stock are subject to uncertainty and changes in circumstances.
• Actual results 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.

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, stock price, applicable securities laws, and alternative investment opportunities.

Industry Context

This update reflects a common corporate finance strategy where established media and information services companies utilize share buyback programs to return capital to shareholders and potentially boost earnings per share, signaling confidence in their financial health and future prospects.

Stakeholder Impact

• Shareholders: Potential for increased earnings per share and enhanced shareholder value due to reduced share count and return of capital.
• Investors: Provides transparency on the company's capital allocation strategy and ongoing commitment to shareholder returns.

Next Steps

• Continue to acquire Class A and Class B common stock under the authorized $1 billion repurchase program.
• Provide daily disclosures of transactions to the Australian Securities Exchange (ASX) as required.
• Disclose information concerning the Repurchase Program in quarterly and annual reports.

Key Dates

Recommendation

Keywords

News Corporation, Stock Repurchase Program, Share Buyback, NWSA, NWS, Class A Common Stock, Class B Common Stock, Shareholder Value, Capital Allocation, ASX, SEC Filing