News Corporation (ASX Code: NWS; Nasdaq: NWS) has announced an important update on its stock buyback program, signaling a strong commitment to enhancing shareholder value. This announcement, dated May 12, 2025, updates previous reports and details a selective buyback initiative involving the repurchase of Class A and Class B common stock with a sizable aggregate cap of US$1 billion.
What: News Corp is conducting a selective buyback program for its Nasdaq-listed Class A and Class B common stock. This repurchase plan does not include any ASX-listed CHESS Depositary Interests (CDIs), targeting purely U.S.-listed shares.
When: The buyback program was initially notified on September 22, 2021, with the latest update reflecting buybacks executed as recently as May 9, 2025.
Where: The buyback operates primarily within the Nasdaq open market, conducted via brokers such as Morgan Stanley & Co. LLC.
Why: Management emphasizes that the buyback is designed “to enhance shareholder value” — a clear message underlining the company’s confidence in its stock and future prospects.
Quantitative Impact: As of the latest notification, News Corp has repurchased approximately US$672 million worth of shares, equating to 21,787,986 shares bought back. This represents a significant reduction against the 374,496,179 shares outstanding in the Class A category, potentially boosting metrics such as earnings per share and return on equity due to the reduced share base.
Financial Context: According to the fiscal year ending December 31, 2024, News Corp reported total annual revenues of \(10.085 billion and net income of \)266 million. Their total assets as of 2024 were about \(16.684 billion, with total liabilities of \)7.673 billion. The buyback program’s scale and execution can positively influence the company’s financial ratios, including return on equity and shareholder value metrics.
Additional Insights: News Corp’s recent fiscal year 2024 mergers and acquisitions include strategic purchases such as the base chemicals business for \(295 million and the oil price information services unit for \)1.15 billion. These investments reflect the company’s focused expansion and diversification strategy, complementing the current capital return to shareholders through the buyback.
In previous earnings calls, News Corp’s management has outlined themes of disciplined capital allocation and shareholder returns as key priorities, which align with the strategic execution of this buyback.
This buyback announcement and the associated financial maneuvers solidify News Corp’s stance on utilizing capital effectively in an economic environment marked by uncertainty and market fluctuations. Shareholders and market watchers alike will find this initiative an authoritative indicator of confidence in the company’s fundamentals and outlook.
For original source document and detailed information: News Corporation 8-K Buyback Announcement
Keywords: News Corporation buyback, stock repurchase, shareholder value, Nasdaq common stock, News Corp financials, US$1 billion buyback program, selective stock buyback, earnings per share improvement, financial strategy, mergers and acquisitions.