News Corporation Announces Continuation of \$1 Billion Share Repurchase Program

Key Points:

• News Corporation (“the Company”) continues its stock repurchase program, authorizing up to \$1 billion in aggregate to buy back outstanding shares of Class A common stock and Class B common stock.
• The repurchase program is conducted under the rules of the Australian Securities Exchange (ASX), which requires daily disclosure of buy-back transactions.
• Goldman Sachs & Co. LLC has been designated as the broker for executing buy-backs on behalf of News Corporation.
• The Company does not intend to buy back a minimum number of securities and the price paid for repurchased shares is not fixed, implying purchases will be made at market prices.
• Recent buy-back activity includes the repurchase of 1,438,161 shares of Class A common stock and 46,651 shares of Class B common stock at a price of US\$23.55 per share for Class A stock.
• The repurchase program is designed to enhance shareholder value and is subject to market conditions, stock price, applicable laws, and alternative investment opportunities.

Details Investors Need to Know:

• The repurchase program is potentially price-sensitive, as buy-backs can reduce the total number of shares outstanding, thereby increasing earnings per share and potentially supporting the share price.
• No ASX-listed CDIs (CHESS Depositary Interests) will be repurchased under these programs; the focus is strictly on Nasdaq-listed Class A and Class B common stock.
• There are no other conditions or security-holder approvals required for the buy-back to proceed.
• Management has made clear that the program is not tied to a fixed repurchase schedule; purchases will be made “from time to time,” and actual buy-back volumes will depend on prevailing market prices and conditions.
• Forward-looking statements regarding repurchase intentions are subject to risks and uncertainties, including changes in market price, general market conditions, securities laws, and alternative investment opportunities.
• The Company does not undertake any obligation to publicly update forward-looking statements regarding the repurchase program except as required by law or regulation.
• The repurchase program is part of a broader strategy to return capital to shareholders and signal confidence in the Company’s future prospects.

Potential Impact on Share Price:

• The announcement and ongoing execution of a significant buy-back program may positively impact News Corporation’s share price by reducing share supply and demonstrating management’s commitment to shareholder value.
• Investors should monitor daily ASX disclosures for buy-back activity, as increased buy-back volumes may signal management’s view of undervaluation and could drive market sentiment.
• The use of Goldman Sachs & Co. LLC as broker underscores the Company’s intent to efficiently execute share repurchases in the open market.
• The actual volume and timing of buy-backs will depend on market movements; investors should expect variability in buy-back pace and price.

Summary:

News Corporation’s \$1 billion stock repurchase program represents a significant capital allocation decision. By buying back shares, the Company aims to enhance shareholder value, increase earnings per share, and signal corporate confidence. While the program’s execution is subject to market conditions and is not guaranteed, investors should be aware that buy-backs can be price-sensitive and may affect share values. The daily disclosure requirement on the ASX allows shareholders and potential investors to monitor buy-back activity closely. The Company’s forward-looking statements suggest flexibility and responsiveness to market conditions, but also highlight the inherent risks and uncertainties associated with buy-back programs.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with professional advisors before making investment decisions. The information presented here is based on News Corporation’s filings and may be subject to change. Actual results and market impacts may differ from forward-looking statements due to various risks and uncertainties.

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