News Corporation Announces \$1 Billion Stock Buy-Back Program
Key Points:
- News Corporation (“News Corp”) has announced it is authorized to repurchase up to \$1 billion in aggregate of its Class A common stock and Class B common stock.
- The repurchase program, referred to as the “2025 Repurchase Program,” is intended to enhance shareholder value.
- Repurchases will be executed from time to time in the open market or otherwise, subject to market conditions, stock price, and other relevant factors.
- No ASX-listed CDIs (Chess Depositary Interests) will be repurchased under this program.
- The maximum number of securities proposed to be bought back is up to \$1 billion worth, with Goldman Sachs & Co. LLC appointed as the broker for the buy-back.
- Buy-backs are for cash consideration, but the exact price paid for repurchased securities may not be known in advance and will depend on prevailing market prices.
- As per the latest daily buy-back notification, on May 29, 2026, News Corp repurchased shares at US\$26.00 per share.
- Shareholder approval is not required for this buy-back, and there are no other outstanding conditions that need to be satisfied for the buy-back to proceed.
- Forward-looking statements are included, indicating the company’s intent to continue repurchases as market conditions allow, but results may vary due to market volatility and other factors.
Details for Investors
Buy-Back Program Details:
- Repurchase program covers both Class A and Class B common stock listed on Nasdaq under trading symbols NWSA (Class A) and NWS (Class B).
- The buy-back is designed to be price sensitive. Management will decide on repurchase timing and volumes based on stock price, general market conditions, and alternative investment opportunities.
- The company will disclose daily buy-back transactions to the ASX, with additional information in quarterly and annual reports.
- On the notification date, 3,404,865 shares were bought back, with a total consideration paid or payable for the securities.
Shareholder Considerations & Potential Price Sensitivity:
- This buy-back program can affect share values by reducing the number of shares outstanding, potentially increasing earnings per share and supporting the share price.
- The company’s commitment to use up to \$1 billion for buy-backs signals confidence in its financial position and future prospects.
- Buy-backs may be viewed positively by the market as they are often seen as a way to return value to shareholders, especially if the shares are undervalued.
- Investors should note that actual repurchase amounts may vary depending on market conditions, and management may adjust or suspend the program at any time.
- No shareholder approval is required, so execution can be swift and flexible.
- Forward-looking statements caution that actual results may differ due to changes in stock price, market conditions, legal requirements, and other risks.
Program Mechanics
- Broker: Goldman Sachs & Co. LLC will act as the agent for buy-back executions.
- Only Nasdaq-listed shares (NWSA, NWS) are included, not ASX CDIs.
- Repurchase price will be based on market prices at the time of purchase.
- The anticipated date for certain buy-back events was cited as September 22, 2021, indicating the ongoing nature of the program.
Forward-Looking and Regulatory Statements
- Statements regarding intent and scope of buy-back are forward-looking and subject to change.
- Management is not obligated to update forward-looking statements unless required by law.
- Risks include market volatility, legal/regulatory changes, and alternative investment opportunities.
Conclusion
The announcement of a substantial \$1 billion share repurchase program by News Corporation is a significant event for shareholders and could be price sensitive. Buy-backs typically reduce shares outstanding, enhance shareholder value, and signal management confidence. The flexibility, scale, and daily disclosure of repurchases will be closely watched by investors. However, the actual impact will depend on execution and market conditions.
Disclaimer: The information provided above does not constitute investment advice. All statements are based on current disclosures and may be subject to change. Investors should consult their financial advisors and review all company filings before making investment decisions. The company’s forward-looking statements are subject to risks and uncertainties, and actual results may differ materially.
