News Corporation (NASDAQ: NWS) has announced an update to its ongoing share repurchase program with an authorization to buy back up to US$1 billion of its Nasdaq-listed Class A and Class B common stock. This strategic move, communicated on June 10, 2025, underscores the company’s commitment to enhancing shareholder value by optimizing its capital structure and returning excess cash to investors.
The buyback program, initiated in 2021, is designed to allow News Corp to repurchase shares either in the open market or through other means, subject to market conditions and stock price levels. To date, the company has repurchased approximately US\(682 million worth of shares, with a substantial portion executed in early June 2025—specifically, 22 million shares were bought back at a total consideration exceeding US\)451 million as of June 6, 2025.
From a financial perspective, News Corp reported a total revenue of approximately \(10.1 billion and delivered net income of \)266 million for FY 2024. The operating margin stood at 6.26%, reflecting the company’s efficient management of operating costs relative to revenues. Operating cash flow was robust at \(1.098 billion, supporting capital expenditures of \)496 million, and yielding a free cash flow margin of 5.97%. These cash flows provide strong backing for the share repurchase program without compromising growth investments.
Importantly, the company’s debt to equity ratio was measured at 2.69 in FY 2024, indicating a leveraged capital structure that the buyback program aims to optimize by returning capital to shareholders and potentially improving earnings per share (EPS).
This buyback initiative aligns with fundamentals from News Corp’s earnings calls emphasizing disciplined capital allocation to enhance shareholder returns while maintaining flexibility in capital deployment. The program is a timely response to prevailing economic conditions and market uncertainties, signaling management’s confidence in the company’s sustainable cash generation capability.
The share repurchase program excludes any Australian Securities Exchange (ASX) listed CHESS Depositary Interests (CDIs), focusing solely on Nasdaq-listed common stock, which is instrumental in driving actual EPS accretion and shareholder wealth enhancement.
News Corporation’s strategic capital actions ensure a balanced approach, prioritizing organic growth investments, potential acquisitions, and shareholder return through buybacks. This balanced capital allocation positions the company for competitive resilience amid evolving industry dynamics including governmental efficiency considerations and economic uncertainties.
For investors and market participants, this buyback announcement reinforces confidence in News Corp’s financial health and strategic vision for sustained shareholder value creation.
Source Document: News Corporation SEC 8-K Buyback Update