8-K: News Corp Updates $2 Billion Share Buyback Program

News Corporation announced an update on its ongoing $2 billion share repurchase program for Class A and Class B common stock, including recent daily buyback activity.

Summary

• News Corporation is authorized to repurchase up to an aggregate of US$2 billion of its Class A and Class B common stock under two programs: the 2021 Repurchase Program (US$1 billion authorized as of September 21, 2021) and the 2025 Repurchase Program (additional US$1 billion authorized as of July 15, 2025).
• The company intends to repurchase shares from time to time in the open market or otherwise, with the primary goal of enhancing shareholder value.
• On December 18, 2025, the company bought back 70,004 Class A shares for US$1,840,139.14 and 30,471 Class B shares for US$904,138.56.
• Cumulatively, under the 2021 Repurchase Program, approximately US$942,148,090 worth of Class A and Class B shares have been purchased to date.
• The total number of Class A common stock on issue is 371,458,287, and Class B common stock is 142,884,361.
• Goldman Sachs & Co. LLC is the broker facilitating the buyback program.

Sentiment

Score: 7

Explanation: The filing details an ongoing share repurchase program, which is generally viewed positively by investors as it signals management's confidence in the company's valuation and commitment to returning capital to shareholders. The authorization of an additional US$1 billion program further reinforces this positive sentiment. However, it is a routine update rather not a new, significant announcement.

Positives

• The ongoing share repurchase program aims to enhance shareholder value by reducing the number of outstanding shares.
• An additional US$1 billion was authorized for the 2025 Repurchase Program, demonstrating continued commitment to returning capital to shareholders.
• The company is actively executing the buyback, with recent purchases on December 18, 2025, indicating consistent capital allocation.

Risks

• Actual results of the repurchase program may vary materially from forward-looking statements due to changes in the market price of the company's stock.
• General market conditions could impact the effectiveness or execution of the buyback program.
• Applicable securities laws and alternative investment opportunities may influence repurchase decisions.
• Other risks, uncertainties, and factors described in the company's filings with the Securities and Exchange Commission could affect the program.

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, and other factors. It does not undertake any obligation to publicly update forward-looking statements except as required by law or regulation.

Management Comments

• The Company intends to repurchase, from time to time, in the open market or otherwise, a combination of the Company's Class A common stock and Class B common stock.
• The buy-back is to enhance shareholder value.

Industry Context

Share buyback programs are a common capital allocation strategy employed by mature companies with strong cash flows to return value to shareholders, reduce share count, and potentially boost earnings per share. News Corporation, as a diversified media and information services company, uses this strategy to manage its capital structure and signal confidence in its valuation, aligning with practices seen across the broader media and technology sectors.

Comparison to Industry Standards

• News Corporation's US$2 billion share repurchase authorization is a significant capital return initiative, comparable in scale to similar programs by other large, established media and information companies like Comcast, Disney, or Thomson Reuters, which frequently utilize buybacks to optimize shareholder returns.
• The use of Goldman Sachs & Co. LLC as a broker for the buyback is standard practice for large-scale corporate repurchases, ensuring efficient market execution.
• The stated reason 'to enhance shareholder value' is a standard justification for such programs across industries, reflecting a commitment to capital efficiency and shareholder returns.

Stakeholder Impact

• Shareholders: Potential for increased earnings per share and share price appreciation due to reduced share count, enhancing shareholder value.

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 significant share repurchase program, which is a positive signal for shareholder value. However, it is a routine update on an existing program rather than new strategic news or financial results that would warrant a change in investment thesis. Investors should hold, monitoring the continued execution of the buyback and broader company performance.

Keywords

News Corporation, NWSA, NWS, share buyback, stock repurchase, capital return, shareholder value, media, publishing, information services, Goldman Sachs