8-K: News Corp Continues $1 Billion Stock Repurchase Program
Daily Buy-Back Notification
News Corporation discloses daily buy-back activity to the ASX as part of its ongoing $1 billion stock repurchase program.
Summary
- News Corporation has an ongoing 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 March 26, 2025, the company repurchased 13,792 Class A shares for $380,173.72 and 6,908 Class B shares for $213,938.69.
- The total amount spent to date on the repurchase program is approximately $653,447,372.30.
- The repurchases are conducted in the open market or otherwise, subject to market conditions and the company's stock price.
Sentiment
Score: 7
Explanation: The sentiment is neutral to positive. The announcement confirms the continuation of a previously announced buyback 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 prospects. However, the announcement also includes cautionary language about market conditions and other factors that could affect the buyback program.
Positives
- The stock repurchase program aims to enhance shareholder value.
- The company is transparently disclosing its buy-back activities to the ASX.
Risks
- The company's actual repurchase activity may vary based on market conditions, stock price, securities laws, and alternative investment opportunities.
- Forward-looking statements regarding the repurchase program are subject to uncertainty and changes in circumstances.
Future Outlook
The company intends to repurchase shares from time to time, subject to market conditions and other factors, but disclaims any obligation to update forward-looking statements.
Industry Context
Stock repurchase programs are a common way for companies to return capital to shareholders, signaling confidence in their financial position and future prospects. News Corp's program is consistent with this trend.
Comparison to Industry Standards
- Comparable companies like Fox Corporation (FOXA) and Paramount Global (PARA) have also engaged in share repurchase programs to enhance shareholder value.
- The size of News Corp's buyback program ($1 billion) is within the range of similar programs announced by its peers.
- For example, Fox Corporation authorized a $2 billion buyback program in 2019, while Paramount Global has also periodically announced share repurchase initiatives.
Stakeholder Impact
- Shareholders may benefit from the increased earnings per share and potential stock price appreciation resulting from the buy-back program.
Key Dates
| Date | Description |
|---|---|
| 22/9/2021 | Anticipated date buy-back will occur |
| 29/09/2022 | Date lowest price was paid for Class A shares during buyback program. |
| 19/02/2025 | Date highest price was paid for Class A and Class B shares during buyback program. |
| 26/03/2025 | Previous day on which securities were bought back. |
| 27/03/2025 | Date of this announcement. |
Keywords
stock repurchase, News Corporation, ASX, Class A common stock, Class B common stock, shareholder value, buy-back program
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