Title: News Corporation $1 Billion Class A and B Common Stock Buy-Back Program Update April 2025
News Corporation (ASX: NWS), a major global media and information services company, recently announced an update on its ongoing share buy-back program. This update, filed as an Appendix 3C to the ASX on April 30, 2025, provides important details on the company’s plan and current status of repurchasing its Nasdaq-listed Class A and Class B common stocks.
Who: News Corporation, a leading media entity, registered under ARBN 163882933, trading on ASX under the code NWS. What: The company is executing a substantial buy-back program of up to an aggregate amount of US$1 billion share repurchase of its Class A and Class B common stock. When: The latest update is dated April 30, 2025, with buy-back execution activities ongoing as of late April. Where: Shares repurchased are Nasdaq-listed common stocks. No ASX-listed CDIs are included in this program.
Key Details and Quantitative Insights: - Total authorized securities for buy-back program: Up to US\(1 billion worth of shares. - Total securities outstanding in the buy-back class: Approximately 373.85 million shares. - As of April 29, 2025, News Corp has repurchased 21,678,049 shares at a total cost of about US\)441.97 million. - Remaining authorized buy-back capacity stands at approximately US\(333.18 million. - Price range during buy-back activity: Highest price paid was US\)30.69 (Feb 19, 2025), and lowest price was US$14.88 (Sept 29, 2022).
Financial Context: - As of fiscal year ending 2024, News Corp’s book value per share is approximately $14.16. - The company’s net profit margin for the same period was 2.64%, indicating moderate profitability.
Strategic Interpretation: This share buy-back program aims at enhancing shareholder value by returning excess capital to investors through repurchases, which typically support the stock price and improve earnings per share (EPS) metrics. Given that approximately 44.2% of the authorized US$1 billion repurchase capacity has been utilized, the company retains a significant flexibility to continue its program subject to market and corporate conditions.
Context from Previous Earnings Calls: In prior communications, News Corp management emphasized capital efficiency and shareholder returns as key strategic priorities. This buy-back aligns with those themes, reinforcing the company’s commitment to disciplined capital allocation amid an uncertain economic backdrop, including concerns over global economic conditions and the impact of government regulations.
Forward-Looking Perspective: Provided that News Corp continues buy-back activity within the remaining authorized limits, the program could further support the stock price and shareholder equity levels. The buy-back, alongside the company’s moderate profitability, positions News Corp to potentially enhance earnings per share and return metrics in upcoming quarters, benefiting from lower share counts and capital return.
For investors and market participants who ask who, what, when, and where about this buy-back, News Corp’s move demonstrates active management of capital structure and a direct commitment to shareholder value enhancement.
Read the source document here: News Corporation 8-K 8-K Buy-Back Announcement April 2025
Tags: News Corporation, Share Buy-Back, Capital Allocation, Nasdaq Shares, Shareholder Value