Who: News Corporation (ASX code: NWS) has initiated a significant share buyback program involving its Nasdaq-listed Class A and Class B common stock.
What: The company has announced a selective buy-back plan under which it may repurchase up to an aggregate of US\(1 billion worth of its common stock. This repurchase is intended to be conducted in the open market or otherwise, subject to market conditions and stock price movements. As of the announcement date (May 6, 2025), News Corporation has already bought back approximately US\)669.22 million worth of shares, with 21,733,617 shares purchased on May 5 alone for approximately US$443.47 million.
When: This buyback program update was made public on May 6, 2025, with the most recent buyback activity on May 5, 2025. The company initially announced the buyback program in June 2021, reflecting an ongoing commitment to this capital management strategy.
Where: The buyback program covers the company’s Nasdaq-listed Class A common stock and Class B common stock, excluding any ASX-listed CHESS Depositary Interests (CDIs).
Financial Impact: News Corporation reported total revenue of \(10.085 billion and net income of \)266 million for the fiscal year ending December 31, 2024. The company’s financing cash flow for the same period was negative \(441 million. Considering the buyback outlay of approximately \)669.22 million to date, this represents a strategic allocation of capital aimed at enhancing shareholder value by reducing outstanding share count, potentially increasing earnings per share (EPS).
Contextual Analysis: This buyback program follows the company’s strategic financial decisions evidenced in prior quarterly earnings calls, where management emphasized capital efficiency and shareholder returns amidst economic uncertainties and regulatory environments. The selective nature of this buyback program and the substantial financial commitment reinforce News Corporation’s confidence in its long-term growth and profitability outlook.
Stock Price Movements: The buyback purchases ranged in price from a low of \(14.88 (September 29, 2022) to a high of \)30.69 (February 19, 2025), indicating opportunistic repurchase leveraging market price volatility.
In summary, News Corporation’s $1 billion share repurchase program is a significant financial maneuver designed to optimize its capital structure and enhance returns for shareholders. This move, supported by solid financial performance in FY 2024, demonstrates the company’s proactive approach to navigating market conditions and creating shareholder value.
Source document: SEC 8-K Buyback Announcement
Tags: NewsCorpBuyback, CapitalAllocation, ShareRepurchaseProgram, NasdaqStock, ShareholderValueEnhancement