On April 29, 2025, News Corporation (ASX code: NWS) announced a strategic stock buy-back program through an 8-K filing, targeting up to an aggregate of US$1 billion of its Nasdaq-listed Class A and Class B common stock. This move reflects the company’s continued commitment to enhancing shareholder value by leveraging repurchase opportunities in the open market or otherwise, subject to market conditions and share price dynamics.
Key Details of the Buy-Back Program: - The buy-back covers a total of 373,850,466 Class A common shares currently issued. - To date, News Corporation has repurchased approximately US\(666.23 million worth of its Class A and Class B shares. - On April 28, 2025 alone, the company bought back 21,663,857 shares at a total value of approximately US\)441.58 million. - The purchase price per share ranged from a low of US\(14.88 to a high of US\)30.69, reflecting market fluctuations since September 2022 and February 2025 respectively. - Broker Morgan Stanley & Co. LLC is facilitating the transactions.
Financial Impact Context: In its fiscal year 2024, News Corporation reported total revenues of US\(10.085 billion and a net income of US\)266 million, with total shareholder equity standing at US\(8.12 billion as of December 31, 2024. The buy-back program, involving up to US\)1 billion, represents a significant allocation of capital aimed at strengthening the company’s financial structure and returning value to shareholders.
By repurchasing shares, News Corporation effectively reduces the number of shares outstanding, potentially increasing earnings per share (EPS) and providing upward pressure on the stock price. This financial strategy aligns with prior management commentary in earnings calls where enhancing shareholder returns and optimizing capital allocation have been emphasized as top corporate priorities.
Why This Matters: Stock buy-backs are a crucial tool for companies like News Corporation amid economic uncertainties, including tariff impacts and broader market volatility. This repurchase program signals confidence in the company’s future prospects and its commitment to maintaining a robust shareholder base.
For investors and market watchers asking who, what, when, and where: - Who? News Corporation, a leading global media and information services company. - What? A substantial stock buy-back program worth up to US$1 billion. - When? Announced April 29, 2025, with ongoing purchases including significant action on April 28, 2025. - Where? Targeting Nasdaq-listed Class A and Class B common stock.
Analysts will be monitoring the buy-back execution closely, considering its implications on News Corp’s valuation metrics and future financial statements. This initiative could lead to improved EPS and impact key financial ratios positively.
For more information, you can access the original 8-K filing here: News Corporation 8-K Filing
Tags: News Corporation, stock buy-back, share repurchase, Nasdaq, financial strategy