News Corporation Announces $1 Billion Share Buyback Program to Enhance Shareholder Value

News Corporation (ASX: NWS) has formally announced a significant share buy-back initiative with a repurchase program capped at an aggregate of US$1 billion involving the Company’s Nasdaq-listed Class A and Class B common stock. This move, disclosed in the recent 8-K filing dated May 23, 2025, underscores News Corp’s strategic focus on capital allocation aimed at amplifying shareholder value while navigating current market conditions.

The buy-back program allows the company to repurchase shares from the open market or other avenues, subject to market dynamics and stock price fluctuations. Notably, this initiative excludes any ASX-listed CHESS Depositary Interests (CDIs) from repurchase.

From the latest figures, the total number of Class A common stock shares issued stands at 374,433,212. As of May 22, 2025, News Corp has bought back approximately 21,901,060 securities at a cash consideration nearing US\(448.2 million. The buy-back price ranged widely with the highest executed price at US\)30.69 per share (recorded on February 19, 2025) and the lowest at US\(14.88 (recorded on September 29, 2022). To date, the company has executed share repurchases worth roughly US\)676.6 million under this program.

Placing this buyback activity in the context of the company’s financials, the reported net income for FY 2024 was US\(266 million, complemented by a robust operating cash flow of approximately US\)1.1 billion. Despite the absence of specific cash flow disclosures related to share repurchases, it is evident this capital return plan is a material lever in the company’s broader cash flow management and commitment to augmenting shareholder returns.

The buy-back aligns with previously shared strategic priorities discussed in News Corporation’s quarterly earnings calls, emphasizing disciplined capital allocation, optimizing shareholder return pathways, and balancing growth investments with direct capital returns. It reflects confidence in the company’s valuation and future cash generation capabilities amidst ongoing economic uncertainties and market challenges.

This program is expected to have a positive influence on earnings per share (EPS) by reducing the outstanding share count, thereby enhancing intrinsic equity value for investors over the medium term. Analysts and investors should watch for the ongoing execution pace of this program as a key indicator of management’s confidence and capital priorities.

For a closer look into News Corporation’s financial landscape and further buy-back details, refer to the source document here: 8-K Filing - News Corporation Buy-back Program.

Tags: NWS, News Corporation, FY2024, stock buyback, shareholder value enhancement, capital allocation