News Corporation (ASX: NWS) has announced a significant buy-back initiative targeting up to an aggregate of US$1 billion worth of its Nasdaq-listed Class A and Class B common stock. This selective repurchase program aims to enhance shareholder value by reducing outstanding shares, optimizing capital structure, and signaling confidence in the company’s future prospects. The notification, filed with ASX on April 22, 2025, details the ongoing repurchase activities and the strategic intent behind this financial maneuver.
As of April 17, 2025, News Corporation has repurchased approximately 21.58 million shares at a total cost of around US\(439.35 million. This accounts for about 66% of the authorized buy-back amount, demonstrating an aggressive and continuous commitment to the strategy. The buy-back prices have ranged from US\)14.88 to US$30.69 per share, reflecting market conditions over time, with the highest price paid noted on February 19, 2025.
To contextualize the financial impact, News Corporation reported total revenues of approximately \(10.09 billion and a net income of \)266 million for the fiscal year ending December 31, 2024. The company’s total shareholder equity stood robust at $8.12 billion. This buy-back program, by potentially reducing the number of shares outstanding (currently 373.98 million in the Class A stock alone), can lead to an increase in earnings per share (EPS) and return on equity (ROE), positively influencing investor perceptions.
The buy-back is executed with no requirement for shareholder approval and no restrictions on foreign participation, enabling a flexible and efficient implementation. Morgan Stanley & Co. LLC has been appointed as the broker to handle the buy-back transactions.
This repurchase initiative aligns with themes expressed in News Corporation’s recent earnings calls, where management emphasized capital discipline, shareholder returns, and confidence in sustaining operational performance. The buy-back signals a strong financial position and a strategic approach to enhancing shareholder value amid varying market conditions.
In summary, News Corporation’s $1 billion share buy-back program reflects a calculated financial strategy designed to optimize capital allocation, strengthen market confidence, and deliver enhanced returns to shareholders. Market participants and investors should monitor the continuing execution of this initiative as it unfolds.
For detailed information, see the official ASX notification: News Corp Buy-Back Announcement.