News Corporation Advances $1 Billion Nasdaq Share Buyback Program with Class B Stock Purchases

News Corporation’s Diverse Media Portfolio Guides Capital Allocation Strategy

News Corporation operates as a diversified media and publishing powerhouse with extensive interests spanning news, entertainment, digital real estate, book publishing, and financial information services. It owns flagship titles such as The Wall Street Journal, The Times of London, and The Sunday Times, alongside numerous publications across multiple continents. The company also holds significant stakes in digital real estate platforms and maintains a presence in entertainment through media production and distribution businesses. This broad portfolio positions News Corporation among the world’s largest media conglomerates, generating revenue from print, digital, broadcasting, and information services across North America, Europe, Asia-Pacific, and Australia.

The initiation of the share repurchase program underscores management’s confidence in the intrinsic value of News Corporation’s common stock and reflects a strategic focus on returning capital to shareholders. By reducing the share count, the company aims to enhance earnings per share for remaining investors and signal that current market valuations represent compelling capital deployment opportunities. This buyback approach offers more flexibility than dividends, enabling the company to capitalize on favourable market conditions and share price fluctuations.

Authorisation and Scope of the 2025 Share Buyback Program

Authorised on 15 July 2025, News Corporation’s US$1 billion repurchase program covers both Class A and Class B common stock, consistent with the company’s dual-class share structure on Nasdaq. As of the notification date, 142,705,333 Class B shares were outstanding, providing context for the repurchase’s scale relative to the company’s market capitalisation and equity base. The company plans to conduct repurchases intermittently in the open market or via alternative methods, contingent on market conditions, stock prices, and operational factors.

The dollar-denominated program grants management discretion over timing and volume, allowing adaptation to market dynamics and liquidity without fixed purchase targets. This flexible framework aligns with common practices among large publicly traded firms balancing capital returns with strategic initiatives such as acquisitions or debt reduction. Goldman Sachs & Co. LLC’s selection as executing broker brings extensive trading expertise and market infrastructure to support efficient execution.

Daily Repurchase Activity and Pricing on 22 July 2026

According to the daily notification filed on 23 July 2026, News Corporation repurchased a total of 4.617 million Class B shares in two transactions during the reporting period. Prior to 22 July 2026, 4.589 million shares were acquired for approximately US$132,105,616.10, averaging about US$28.79 per share. On 22 July 2026 alone, an additional 28,800 shares were bought for US$894,631.68, averaging roughly US$31.07 per share. These transactions illustrate active execution across multiple trading days, capturing diverse market prices to optimize average capital deployment costs.

Repurchase prices ranged from a low of US$25.49 to a high of US$32.89 per share, with the highest price paid on 17 July 2026. This nearly 29% price variation reflects typical market volatility and highlights the timing risks inherent in equity buyback programs. By spreading purchases over several dates and price points, the company mitigates concentration risk and smooths acquisition costs. Although the remaining authorised amount under the US$1 billion program was not disclosed post-22 July 2026, the cumulative spend of approximately US$133 million indicates significant capacity remains.

Regulatory Compliance and ASX Disclosure Protocols for the Buyback

News Corporation’s repurchase program is classified as an "other buy-back" under ASX Listing Rules, reflecting its Nasdaq listing and dual-class share structure, which differ from typical ASX-listed securities. The company complies with Listing Rule 3.8A by submitting daily buy-back notifications to the ASX at least 30 minutes prior to market open on each business day following repurchase activity. This transparency ensures investors receive timely information about capital allocation and share count changes. The daily disclosure approach maintains ASX compliance while the primary trading occurs on Nasdaq.

The company confirmed that no ASX-listed CHESS Depositary Interests (CDIs) will be repurchased, limiting the program strictly to Nasdaq-listed Class A and Class B shares. This distinction is crucial for Australian investors holding CDIs, as the buyback does not directly affect CDI trading volumes or share counts. The program’s lack of requirement for shareholder approval indicates the board’s delegated authority suffices for authorisation, and the absence of foreign participation restrictions facilitates unrestricted execution across Nasdaq sellers.

Capital Deployment Strategy and Shareholder Value Enhancement

News Corporation’s rationale for the buyback centers on enhancing shareholder value, a common strategy among mature companies with stable cash flows. By lowering outstanding shares without reducing total earnings, repurchases increase earnings per share, potentially supporting share price appreciation. This is particularly relevant for News Corporation, which generates substantial free cash flow from its diversified media and digital assets, enabling capital returns alongside operational investments. The US$1 billion buyback reflects confidence in the company’s business durability and cash generation capacity.

Authorised in July 2025 and actively executed throughout 2026, the program signals management’s belief that shares are attractively valued. Repurchases often indicate that internal assessments deem the stock trading below intrinsic value or that reducing share count offers higher returns than alternative investments. For investors, buybacks provide a tax-efficient capital return compared to dividends, allowing shareholders to opt in or maintain holdings. This program complements dividend policies by offering flexible capital return options alongside reinvestment in growth areas.

Market Price Trends and Volatility During Repurchase Period

The US$25.49 to US$32.89 price range during the buyback period reflects market forces impacting News Corporation shares in mid-2026, including industry trends, company-specific news, and macroeconomic factors. The nearly 29% price fluctuation underscores volatility, presenting both challenges and opportunities for optimizing repurchase execution. The dollar-denominated program structure enables pausing or adjusting purchases if prices rise excessively, preserving capital for other uses.

The peak price of US$32.89 per share on 17 July 2026 marks the highest valuation at which repurchases occurred, suggesting management viewed higher prices as less attractive. Conversely, the low of US$25.49 per share represented favorable entry points for aggressive capital deployment, as reflected in substantial cumulative purchases before 22 July 2026. This disciplined price management reduces risks associated with large buybacks at inflated valuations.

Brokerage Partnership and Execution Capabilities

Engaging Goldman Sachs & Co. LLC as the repurchase broker aligns with best practices for large-scale, multi-tranche equity buybacks. Goldman Sachs is a leading global investment bank and brokerage firm with advanced trading capabilities, market infrastructure, and expertise in executing large block trades and systematic repurchase programs on major exchanges like Nasdaq. The broker manages market assessments, execution timing, trading algorithms to minimize market impact, and ensures settlement and regulatory compliance.

This arrangement provides independence from internal trading decisions, mitigating conflicts of interest and ensuring adherence to insider trading laws and market manipulation rules. Goldman Sachs is responsible for compliance with securities regulations, including blackout periods around earnings or material non-public information. The ongoing partnership reflects confidence in the broker’s proficiency and supports professional, regulatory-compliant program administration, reassuring investors.

Impact on Australian Investors and CDI Holders

Australian investors holding News Corporation shares via ASX-listed CHESS Depositary Interests (CDIs) experience limited direct effects from the Nasdaq-based buyback. The company’s confirmation that no CDIs will be repurchased means Australian investors cannot tender CDIs and the CDI share count remains unaffected. However, the reduction in underlying Nasdaq-listed shares may enhance earnings per share, potentially benefiting CDI holders indirectly if profitability remains stable or improves.

Investors should note that CDI prices and volumes may not perfectly mirror Nasdaq movements due to currency exchange rates, differing trading hours, and liquidity differences. The buyback’s impact on earnings per share is measured in US dollars, requiring Australian investors to consider USD/AUD exchange rate fluctuations when evaluating returns. Continued repurchases demonstrate management’s confidence in News Corporation’s fundamentals, offering reassurance regarding the long-term outlook for CDI holders in this global media conglomerate.

Program Flexibility and Future Execution Outlook

The repurchase program is open-ended, with no fixed completion deadlines or mandatory purchase volumes, allowing News Corporation to adapt execution based on market and company conditions. Repurchases will occur "from time to time" in the open market or by other means, subject to stock prices, liquidity, and strategic priorities. This flexibility is valuable amid market volatility or competing capital needs such as acquisitions, debt reduction, or business investments. No target completion date has been disclosed, enabling the program to extend over multiple years if necessary.

Investors should monitor ongoing daily buy-back notifications to track cumulative repurchases, average prices, and remaining authorised amounts. As of 22 July 2026, approximately US$133 million of the US$1 billion authorisation had been deployed, indicating substantial capacity remains. Future changes in repurchase activity may signal management’s evolving views on valuation or capital allocation within the media and entertainment group.