PocketQuant | News Corporation Share Buy-Back: Strategic Move to Enhance Shareholder Value in 2025

News Corporation Share Buy-Back: Strategic Move to Enhance Shareholder Value in 2025

Author:PQ Automations
| | Tags: shareholder value buy-back capital allocation News Corp 2025

News Corporation (ASX: NWS, ARBN 163882933) Enhances Shareholder Value with Aggressive US$1 Billion Share Buy-Back Program

On April 17, 2025, News Corporation (ticker: NWS) made an authoritative announcement through its Appendix 3C, revealing an ongoing and robust share buy-back program. This strategic corporate action is designed to maximize shareholder value and optimize capital allocation in line with best practices for listed entities. (Source: SEC 8-K Filing)

Key Statistics from News Corporation Share Buy-Back Announcement: - News Corporation is executing a buy-back program for up to US$1 billion worth of its Nasdaq-listed Class A and Class B common stock.
- As of April 16, 2025, the company has repurchased approximately US$662.1 million in Class A and Class B shares, representing over 66% of the total authorized value.
- The total number of Class A common shares outstanding in the repurchased class stands at 373,978,194. - On the previous day, News Corp purchased 14,192 shares at an aggregate consideration of US$368,615.91. - The highest price paid during the buy-back program was US$30.69 per share (on February 19, 2025), while the lowest was US$14.88 per share (on September 29, 2022).

Buy-Back Mechanism and Market Impact: - This is an “Other Buy-Back” arrangement, permitting the company to conduct repurchases in the open market or otherwise, at its discretion and subject to prevailing market conditions. - The program exclusively targets Nasdaq-listed shares; no ASX-listed CHESS Depositary Interests (CDIs) will be acquired under this initiative. - Renowned brokerage Morgan Stanley & Co. LLC is facilitating the buy-back executions. - The buy-back is fully cash-settled in US dollars, maximizing liquidity and transparency for shareholders.

Strategic Rationale and Shareholder Benefits: Quoting directly from the regulatory filing, the explicit reason for the buy-back is “To enhance shareholder value.” This aligns with academic and financial research which consistently finds that sizeable buy-back programs can provide strong upward pressure on earnings per share (EPS) and improve return on equity (ROE) for continuing shareholders (see: “Share Repurchases and the EPS Impact,” Harvard Law School Forum on Corporate Governance).

News Corporation’s execution of the program leverages industry best practices to optimize its capital structure and signals management’s confidence in the long-term growth trajectory of its shares. Notably, the absence of security holder approval requirements, restrictions on foreign participation, and other contingencies streamlines the process, further affirming the company’s governance strength and operational fluency.

SEO Keywords: News Corporation, News Corp, share buy-back, stock repurchase, shareholder value, capital allocation, Nasdaq-listed, Class A common stock, Class B common stock, buy-back program, 2025, Morgan Stanley, investor relations.

Conclusion: News Corporation’s strategic buy-back program—targeting up to US\(1 billion in open-market repurchases—positions the company as a proactive steward of shareholder value. With over US\)662 million already deployed and a deliberate, flexible approach in execution, News Corp exemplifies disciplined capital management and market leadership in 2025.

Reference: - Regulatory details and data: News Corp 8-K SEC Filing, April 17, 2025