News Corporation Announces Continuation of \$1 Billion Share Repurchase Program
Key Highlights:
- News Corporation (NASDAQ: NWSA, NWS) confirms ongoing authorization to repurchase up to \$1 billion in aggregate of Class A and Class B common stock under its 2025 Repurchase Program.
- The repurchase program is active for both Class A and Class B shares, with daily disclosures provided to the Australian Securities Exchange (ASX) and regular updates in quarterly and annual reports.
- Repurchases are conducted on-market, with Goldman Sachs & Co. LLC acting as broker for the buy-backs.
- The program is intended to enhance shareholder value and is subject to market conditions, stock price, applicable laws, and other investment considerations.
- As of the latest notification, the maximum number of shares to be bought back remains up to the \$1 billion limit, spread across the classes of common stock.
- Recent buy-back prices have ranged from US\$22.20 to US\$31.40 per share, indicating active participation in the open market.
- The company has explicitly stated that no ASX-listed CDIs (CHESS Depository Interests) will be repurchased under this program, focusing the buyback strictly on U.S.-listed securities.
Details of the Buyback Program
The buyback program, initially announced and authorized as of July 15, 2025, allows News Corporation to repurchase up to an aggregate of \$1 billion in its Nasdaq-listed Class A (NWSA) and Class B (NWS) shares. As of the latest filings, there are approximately 366,490,917 Class A shares and 141,640,129 Class B shares outstanding, with the potential for both classes to be repurchased under this program.
The repurchases are conducted as on-market buy-backs, with Goldman Sachs & Co. LLC serving as the appointed broker. The company has stated that repurchases are made for cash consideration, with the actual price paid depending on prevailing market conditions. The highest price paid in recent repurchases was US\$31.40 per share, while the lowest was US\$22.20 per share.
The company reiterates that the purpose of the repurchase program is “to enhance shareholder value.” No minimum number of shares must be repurchased, but the company does intend to buy back a maximum number, subject to the \$1 billion aggregate cap. There is no requirement for security holder approval, and no other conditions need to be satisfied before the buy-back offer becomes unconditional.
The company is required to provide daily notifications to the ASX for each day that shares are repurchased, as per listing rule 3.8A. These notifications are made public and ensure transparency for shareholders and the market.
Potential Price-Sensitive Information for Investors
- Share Repurchase Activity: Ongoing repurchases, especially at significant volume and dollar amounts, can signal management’s confidence in the company’s intrinsic value. This may act as a price support mechanism or lead to upward pressure on the share price due to decreased float.
- Enhancement of Shareholder Value: The stated objective of the program is to boost shareholder value, which in turn, may affect the perception of the company’s capital management strategy and potentially positively influence the stock price.
- Program Flexibility: The actual amount of shares repurchased will depend on market conditions, and there is no obligation to buy back the full authorized amount if conditions are not favorable. This flexibility allows News Corporation to respond to changes in market circumstances.
- Forward-Looking Statements: The company has noted that forward-looking statements regarding the repurchase program are subject to risks and uncertainties, including market price volatility, general market conditions, and changes in securities laws. Actual buybacks could differ from expectations, which may also impact share price.
What Shareholders Should Know
Shareholders should monitor the company’s ongoing disclosures regarding the buyback program, as significant repurchase activity can impact the supply-demand dynamics of News Corporation stock. The company’s commitment to returning capital to shareholders through buybacks may be an important factor to consider in evaluating the investment case for NWSA and NWS shares.
It should be noted that management has made no commitment to a minimum buyback amount, and the timing and volume of buybacks remain at the company’s discretion. Investors should also be aware of the company’s forward-looking statements and the possibility that actual repurchase activity may differ from current intentions.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Investors should consult their own financial or investment advisers and review the company’s official filings for a complete understanding of the risks and considerations related to News Corporation’s share repurchase program. The actual impact of the buyback program on the share price will depend on multiple factors, including market conditions and company performance.
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