News Corporation (ASX Code: NWS), a global media powerhouse, disclosed an update on its selective buyback program on May 8, 2025, via an Appendix 3C filing with the Australian Securities Exchange (ASX). The program authorizes the repurchase of up to USD 1 billion worth of its Nasdaq-listed Class A and Class B common stock. This strategic move aims to optimize shareholder value by reducing shares outstanding and potentially boosting earnings per share and stock price.
The buyback targets the company’s Class A common stock traded under the symbol NWSAA. The total outstanding shares in this class reached approximately 373.8 million. Importantly, the repurchase program is designed to be flexible and opportunistic, without a fixed minimum number of shares to buy back but capped at USD 1 billion aggregate expenditure. The company has already repurchased about USD 670.4 million worth of shares, indicating strong execution toward this goal.
Information from the filing reports daily activity for May 7, 2025, during which 21.76 million shares were bought back at an aggregate consideration of approximately USD 444.24 million. The highest price paid recently was USD 30.69 per share (on February 19, 2025) and the lowest known was USD 14.88 (September 29, 2022), revealing significant price variability and timing advantage.
News Corporation highlighted a net income of USD 266 million for FY 2024 and shareholder equity of USD 8.12 billion. With about 573.5 million common shares outstanding, this buyback could significantly reduce the float, thereby amplifying earnings per share (EPS).
Assuming full execution of the USD 1 billion buyback at an average price around recent trades (approx. USD 20-30 per share), the company could retire roughly 33 to 50 million shares. This would reduce share count by up to 8.7%, potentially increasing EPS by a commensurate amount, thereby delivering duty-bound enhancement of shareholder returns.
News Corporation’s focus on enhancing shareholder value through buybacks aligns with prior discussions in their earnings calls where management emphasized capital discipline amidst fluctuating media industry revenues. The flexible buyback approach is consistent with their strategic goal to adapt swiftly to market conditions and optimize capital structure.
News Corporation’s announcement of an opportunistic USD 1 billion selective buyback program represents a crucial move to enhance shareholder value through prudent capital management. Investors and analysts should monitor the program’s progress as it could materially affect earnings per share and market valuation in the near term.
For more detailed information, refer to the official filing document here: News Corporation 8-K Appendix 3C Buyback Notification
Tags: NewsCorporationBuyback, ShareRepurchaseProgram, CapitalAllocationStrategy, MediaIndustryFinance, StockBuybackImpact