News Corporation (ticker: NWS) has announced an impactful update regarding its ongoing share repurchase program, signaling a strategic move to enhance shareholder value. According to the latest 8-K filing dated June 19, 2025, News Corp is actively repurchasing its Class A and Class B common stock with an aggregate buy-back authorization of up to US$1 billion. This selective buy-back program is executed through open market purchases and other means, excluding ASX-listed CDIs, and is designed to optimize capital allocation and return cash to shareholders.
As of June 18, 2025, News Corp has repurchased approximately US\(686.8 million worth of shares, with 22,132,534 securities bought back on June 18 alone, at a total consideration of approximately US\)454.7 million. The buy-back prices have ranged from a low of US\(14.88 (September 29, 2022) to a high of US\)30.69 (February 19, 2025), reflecting market price fluctuations over the program’s duration. The company currently has authorization to repurchase up to US$1 billion in total, indicating significant remaining capacity for further buy-backs.
From a financial perspective, News Corp’s FY 2024 results provide a robust backdrop for this capital return strategy. The company generated a free cash flow of approximately US$602 million, supporting its ability to fund the buy-back program without compromising operational liquidity. The debt-to-equity ratio stands at 2.69, indicating a leveraged capital structure typical for media conglomerates, while the operating margin is 6.26%, and the net profit margin is 2.64%, reflecting moderate profitability in a competitive industry.
This buy-back initiative aligns with themes highlighted in News Corp’s previous earnings calls, where management emphasized disciplined capital allocation and shareholder value enhancement amid economic uncertainties and evolving media landscapes. The repurchase program serves as a tangible demonstration of management’s commitment to optimizing the capital structure and returning excess cash to shareholders.
Looking forward, the continuation of this buy-back program could positively influence earnings per share (EPS) by reducing the share count, potentially supporting the stock price. Given the company’s free cash flow generation and moderate leverage, the buy-back is financially sustainable and strategically prudent.
In conclusion, News Corporation’s selective buy-back program, backed by solid free cash flow and a strategic capital allocation framework, underscores its focus on shareholder value maximization. Investors should monitor the program’s progress and its impact on financial metrics and stock performance in the coming quarters.
Source Document: News Corporation 8-K Buy-Back Notification June 2025