News Corp (NASDAQ: NWS, NWSA; ASX: NWS; NWSLV) has announced the authorization of a new $1 billion stock repurchase program, in addition to the existing $1 billion program authorized in September 2021, of which $303 million remains outstanding. The company intends to accelerate the pace of share repurchases following the fiscal 2025 fourth quarter earnings release in early August.
Key Metrics: Total authorization for stock repurchase to increase to $1.3 billion, including the remaining $303 million under the existing program. News Corp has delivered its four most profitable years from fiscal 2021 to 2024, with continued strong performance through the third quarter of fiscal 2025. * The company intends to repurchase a combination of its class A common stock and class B common stock from time to time, in the open market or otherwise, subject to market conditions and the market price of the company’s stock.
Statement from News Corp CEO, Robert Thomson: "We believe our stock is trading at a significant discount to its intrinsic value, so we are launching a new $1 billion buyback program, which is in addition to the $303 million remaining under our existing program. We also expect to increase meaningfully and materially the pace of repurchases from the current daily rate. We sincerely believe that expanding our repurchase program will enhance value for all shareholders and the expected pacing reflects our belief in the financial health of our company."
Since the last period, News Corp has undergone significant transformation with a focus on strategic investments in its core growth pillars, including Dow Jones, digital real estate services, and book publishing. The company has also seen a focus on recurring and digital revenues, new high-margin content licensing deals, and a streamlined asset base, including the recent sale of Foxtel Group to DAZN. Following these announcements, the company's shares moved 0.49%, and are now trading at a price of $29.875. For the full picture, make sure to review NEWS CORP's 8-K report.