News Corporation, a major global media and information services company, has announced a significant update on its selective buy-back program targeting its Nasdaq-listed Class A and Class B common stocks. This update was officially communicated on May 9, 2025, through the Australian Securities Exchange (ASX) under the code NWS, outlining the company’s ongoing plan to repurchase up to US$1 billion worth of shares to enhance shareholder value.
The company has already invested approximately US\(671 million in repurchasing its shares, reflecting a major allocation of capital towards this shareholder-friendly initiative. Specifically, on May 8, 2025, News Corporation repurchased approximately 21.77 million shares for a total cash consideration of about US\)444.6 million. This transaction showcases the firm’s strategic efforts to manage its equity base in alignment with market conditions and stock price movements.
In fiscal year 2024, News Corporation posted robust financial results, generating total revenues of approximately US\(10.1 billion along with a net income of US\)266 million. The company also demonstrated healthy liquidity by delivering free cash flow of US$602 million, which supports its capacity to execute the buy-back program without adversely affecting its operational needs.
The selective buy-back program, an “Other buy-back” type as defined by the ASX, is facilitated by Morgan Stanley & Co. LLC, who acts as the broker in acquiring shares on behalf of News Corporation. The repurchases are conducted in US dollars, adhering to the company’s Nasdaq listing requirements.
Further strategic developments in 2024 include the acquisition of key assets: the Base Chemicals Business for US\(295 million, Oil Price Information Services for US\)1.15 billion, and UpNest Inc. for US$45 million. These acquisitions illustrate News Corporation’s ongoing commitment to expanding and diversifying its business portfolio amidst global economic uncertainties and regulatory environments characterized by governmental efficiency programs and tariff considerations.
The company’s management has previously emphasized a disciplined approach to capital allocation and continuous enhancement of shareholder returns during its recent earnings calls, reinforcing the rationale behind this buy-back program. This initiative not only supports the stock price but also signals long-term confidence in the company’s performance and strategic outlook.
In summary, News Corporation’s buy-back update addresses critical questions: Who? News Corporation. What? Selective buy-back of Class A and B shares worth up to US$1 billion. When? Ongoing program with recent activity reported on May 8 and 9, 2025. Where? Nasdaq-listed shares, executed globally with ASX disclosure. Why? To enhance shareholder value and capitalize on strong free cash flow and strategic growth.
For a detailed overview, access the official SEC document here: News Corporation Buy-Back 8-K Report.
Tags: News Corporation Buy-Back, Shareholder Value Enhancement, Fiscal Year 2024 Financials, Strategic Acquisitions, Capital Allocation Strategy