News Corporation (ASX: NWS) has announced an updated buy-back program for its Nasdaq-listed Class A and Class B common stock, marking a strategic move to enhance shareholder value. This program authorizes the company to repurchase up to an aggregate of US\(1 billion of its shares, contingent upon market conditions and stock prices. As of June 2, 2025, News Corp has repurchased approximately US\)679.4 million worth of shares, reflecting a significant commitment towards optimizing its capital structure.
The latest buy-back update, reported in an 8-K filing with the SEC, highlights the repurchase of 21,964,293 securities at a total consideration of approximately US\(450 million. The buy-back prices paid ranged from a low of US\)14.88 to a high of US$30.69 over the duration of the program, indicating an opportunistic approach to capital allocation in fluctuating market conditions. This share repurchase initiative is intended to bolster shareholder returns by reducing the number of outstanding shares and potentially increasing earnings per share (EPS).
From a financial performance perspective, News Corp exhibited robust free cash flow of approximately US\(602 million for the fiscal year ending 2024, providing ample liquidity to support its buy-back strategy without compromising operational cash needs. Additionally, the company maintained a stable dividend payout of approximately US\)0.30 per share in FY 2024, reinforcing its commitment to shareholder returns through a balanced capital allocation approach.
This buy-back program underscores News Corp’s strategic capital management amid economic uncertainties and market volatility. By repurchasing shares, News Corp aims to enhance intrinsic shareholder value while providing flexibility to navigate economic fluctuations, including potential impacts from government efficiency measures, tariffs, and global market dynamics.
News Corporation’s proactive approach aligns with management’s previous earnings call commentary emphasizing disciplined capital allocation and shareholder return enhancement. The absence of any recent mergers and acquisitions activity in Q2 2025 further highlights the company’s focus on organic financial management and value creation.
For investors and market watchers, this buy-back initiative represents a confident assertion of financial strength and strategic foresight, reflecting News Corp’s robust operational cash flow and solid capital position. The program’s completion or continuation will be closely monitored as it influences future EPS growth and shareholder wealth.
Source document: SEC Filing 8-K - News Corporation Buy-back Program Update June 2025
Tags: NWS, News Corporation, Q2 2025, share-buyback, capital-allocation, shareholder-value-enhancement