8-K: News Corp Continues $2 Billion Stock Buyback Program

News Corporation announced ongoing share repurchases under its combined $2 billion stock buyback programs, aiming to enhance shareholder value.

Summary

• News Corporation is actively executing its stock repurchase programs for Class A common stock (NWSA) and Class B common stock (NWSAB).
• The company has two authorized repurchase programs: a 2021 program for up to US$1 billion and a 2025 program for an additional US$1 billion, totaling US$2 billion in authorization.
• As of October 8, 2025, approximately US$804,742,368 has been spent under the 2021 Repurchase Program.
• On October 8, 2025, the company repurchased 65,233 Class A shares for US$1,762,934.87 and 30,471 Class B shares for US$931,367.44.
• The repurchases are conducted in the open market or otherwise, with Goldman Sachs & Co. LLC acting as the broker.
• The highest price paid for Class A shares to date was US$30.93 on September 23, 2025, and the lowest was US$14.88 on September 29, 2022.
• The highest price paid for Class B shares to date was US$35.41 on July 15, 2025, and the lowest was US$15.17 on September 29, 2022.

Sentiment

Score: 7

Explanation: The ongoing stock repurchase program is a positive signal for shareholder value, indicating confidence from management and a commitment to returning capital. The routine nature of the update prevents a higher score, as it's not new news, but the continued execution is favorable.

Positives

• The ongoing execution of a substantial US$2 billion stock repurchase program demonstrates management's commitment to returning capital to shareholders.
• The buyback is explicitly stated to be for the purpose of enhancing shareholder value.
• The company has significant remaining authorization of approximately US$1.195 billion across both programs, providing flexibility for future repurchases.

Risks

• Actual results of the repurchase program may vary materially due to changes in the market price of the company's stock.
• General market conditions could impact the effectiveness or execution of the program.
• Applicable securities laws and alternative investment opportunities may influence the program's scope and timing.
• Other factors described in the company's filings with the Securities and Exchange Commission could affect outcomes.

Future Outlook

The company intends to continue repurchasing Class A and Class B common stock from time to time, subject to market conditions, the market price of its stock, applicable securities laws, and alternative investment opportunities. The company does not undertake any obligation to publicly update any forward-looking statements except as required by law or regulation.

Management Comments

• Management's current expectations and beliefs are that the company intends to repurchase, from time to time, its Class A common stock and Class B common stock to enhance shareholder value.

Industry Context

Stock repurchase programs are a common capital allocation strategy used by mature companies in the media and entertainment industry to return value to shareholders, especially when organic growth opportunities may be limited or when management believes the stock is undervalued. This action aligns News Corporation with peers who utilize similar strategies to manage capital and support share price.

Comparison to Industry Standards

• Many large-cap media conglomerates, such as Disney, Paramount Global, and Warner Bros. Discovery, regularly engage in share buyback programs to optimize capital structure and boost earnings per share.
• News Corporation's US$2 billion authorization is a a significant commitment, comparable in scale to similar programs seen across the industry, reflecting a standard approach to shareholder value enhancement.
• The use of Goldman Sachs & Co. LLC as a broker is also a common practice for large-scale corporate repurchases.

Stakeholder Impact

• Shareholders: Potential for enhanced shareholder value through reduced share count and improved earnings per share.

Next Steps

• Continue repurchasing Class A and Class B common stock under the authorized programs.
• Provide daily disclosure of transactions to the Australian Securities Exchange (ASX).
• Disclose information concerning the Repurchase Programs in quarterly and annual reports.

Key Dates

Recommendation

The filing details the ongoing execution of a previously announced stock repurchase program, which is a positive for shareholder value. However, it does not present new information that would fundamentally alter the investment thesis or warrant a change in recommendation. The buyback is a standard capital allocation strategy, and while it supports the stock, it doesn't suggest a strong 'buy' signal without additional positive operational or financial news. A 'hold' recommendation reflects the stable, value-returning activity without indicating new growth catalysts.

Keywords

News Corporation, Stock Repurchase, Share Buyback, NWSA, NWS, Capital Allocation, Shareholder Value, Media Company, SEC Filing, 8-K