News Corporation (ASX: NWS) has initiated a substantial share buy-back program, signaling a strategic move to amplify shareholder returns and optimize capital structure. According to the latest 8-K filing dated June 3, 2025, the company is authorized to repurchase up to US$1 billion worth of its Nasdaq-listed Class A and Class B common stock. This initiative, subject to market conditions, underscores the company’s confidence in its financial robustness and growth trajectory.
To date, News Corp has repurchased approximately US\(679.96 million worth of shares, including about 21.98 million securities bought back recently at a total consideration of US\)450.31 million. The buy-back prices spanned from USD 14.88 to USD 30.69, reflecting market fluctuations and opportunistic capital deployment.
From a financial perspective, News Corporation reported a total revenue of approximately US\(10.09 billion for FY 2024, with net income of US\)266 million, exhibiting a net profit margin of 2.64% and an operating margin of 6.26%. Capital expenditures amounted to US$496 million, indicating ongoing investments in growth and operational capabilities.
This buy-back program is a tactical capital allocation decision designed to enhance earnings per share by reducing the share count and returning cash to shareholders. It aligns with News Corp’s prior strategic discourse focused on disciplined capital management amid prevailing economic uncertainties such as government efficiency drives and tariff risks.
Strategic acquisitions during FY 2024 include investments of US\(295 million in Base Chemicals, US\)1.15 billion in Oil Price Information Services, and US$45 million in UpNest Inc., emphasizing balanced growth through accretive acquisitions. This share repurchase program complements these growth initiatives by refining the company’s capital structure and providing shareholder value enhancement.
Operating in the competitive media and information services sector, News Corp’s share buy-back reflects proactive financial stewardship to navigate regulatory, economic, and technological challenges. For investors, this initiative is a critical factor in assessing the company’s financial health and long-term growth prospects.
For further details, reference the source filing here: News Corporation 8-K Buy-Back Notification.
Tags: NWS, News Corporation, Q2 2025, share buyback, capital allocation strategy, media sector financials