News Corporation (Ticker: NWS) has announced a significant share buy-back program as detailed in their recent 8-K filing dated June 26, 2025. This strategic move involves a repurchase program authorized for up to an aggregate of US$1 billion of the company’s Nasdaq-listed Class A and Class B common stock. The buy-back is designed to enhance shareholder value by reducing the number of outstanding shares, potentially increasing earnings per share (EPS) and supporting the stock price.
As of June 25, 2025, News Corp has repurchased approximately US\(688.97 million worth of shares, with 22,181,042 shares bought back at a total consideration of approximately US\)456 million on that day alone. The buy-back prices have ranged from a low of US\(14.88 to a high of US\)30.69 per share, reflecting market conditions over recent years.
Financially, News Corp reported total revenues of approximately \(10.09 billion for fiscal year 2024, with a net income of \)266 million, resulting in a net profit margin of 2.64%. The company’s return on equity (ROE) stands at 4.36%, indicating moderate profitability relative to shareholder equity. These figures provide context to the buy-back program, which represents a significant capital allocation aimed at optimizing shareholder returns.
In addition to the buy-back, News Corp has been active in mergers and acquisitions during FY 2024, investing \(295 million in Base Chemicals Business, \)1.15 billion in Oil Price Information Services, and $45 million in UpNest Inc. These strategic acquisitions align with the company’s growth and diversification objectives.
The buy-back program and acquisition activities reflect News Corp’s balanced capital allocation strategy, combining shareholder returns with strategic investments to drive long-term growth. This approach is consistent with themes from previous earnings calls, where management emphasized enhancing shareholder value while pursuing growth opportunities in key business segments.
This buy-back initiative is expected to positively impact News Corp’s earnings per share by reducing the share count, potentially improving valuation metrics and investor confidence. Given the company’s current financial performance and strategic direction, the buy-back program underscores a commitment to disciplined capital management amid evolving market conditions.
For investors and market analysts, News Corp’s buy-back program is a critical development to monitor, as it signals management’s confidence in the company’s future prospects and its focus on maximizing shareholder value.
Source Document: News Corporation 8-K Buy-Back Notification