NEW YORK – News Corporation, a leader in global media and information services, confirmed Monday that it will persist with its stock repurchase initiative, remaining authorized to buy back up to $1 billion of its outstanding Class A and Class B common stock. This move is part of the company's ongoing strategy to enhance shareholder value.
The repurchase program, which has been periodically disclosed in the company's quarterly and annual reports, will continue to be subject to market conditions, applicable legal requirements, and other factors. The transactions will be reported daily to the Australian Securities Exchange (ASX) as required by its rules, alongside regular updates in the company's financial disclosures.
News Corp (NASDAQ:NWSA)'s decision reflects a common practice among public companies to return value to shareholders and manage capital structure efficiently. While the company has expressed its intention to repurchase shares, the actual timing, number, and value of shares repurchased will depend on several factors. These include the market price of News Corp's stock, prevailing market conditions, and potential alternative investment opportunities.
The information provided to the ASX includes forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. However, these statements are subject to uncertainties and changes in circumstances, and actual outcomes could differ materially. Factors that could influence the results include market conditions, legal requirements, and the risks and uncertainties outlined in the company's SEC filings.
The repurchase program's forward-looking statements are valid as of the date of the report, and News Corp does not assume any obligation to update these statements publicly. The company's future repurchase activities will be conducted in compliance with the law and regulations.
Investors and interested parties can find additional details regarding the repurchase program in the exhibits attached to the SEC filing. News Corp's commitment to managing its share structure through the repurchase program is a testament to its focus on long-term shareholder value. This news is based on a recent SEC filing by News Corporation.
In other recent news, News Corporation has been actively advancing its $1 billion stock repurchase program, demonstrating its commitment to returning value to shareholders. The company's latest quarterly reports show a 6% rise in Q4 revenue, reaching approximately $2.6 billion, and an 11% increase in profitability to $380 million.
In related news, News Corp's subsidiary, REA Group Ltd, has withdrawn its potential offer for UK-based Rightmove (OTC:RTMVY) plc, aligning with the continuation of the company's share repurchase program. However, REA Group Ltd has issued a revised non-binding proposal to acquire all share capital of Rightmove plc, indicating the company's strategic interest in the digital real estate sector.
Analysts at Loop Capital and Morgan Stanley have provided insights on News Corp's financial prospects, maintaining a positive outlook. Loop Capital holds a steady Buy rating, and Morgan Stanley has upgraded its target. These recent developments highlight News Corp's strategic financial decisions and potential growth areas.
InvestingPro Insights
News Corporation's stock repurchase initiative aligns with its strong financial position and market performance. According to InvestingPro data, the company boasts a market capitalization of $15.06 billion, reflecting its significant presence in the global media landscape. The company's revenue for the last twelve months as of Q4 2024 stood at $10.09 billion, with a modest growth of 2.09% over the same period.
InvestingPro Tips highlight News Corp's potential for value creation. One tip suggests that the company's earnings per share are forecast to grow, which could support the stock repurchase program's goal of enhancing shareholder value. Another tip indicates that News Corp has maintained dividend payments for 11 consecutive years, demonstrating a commitment to returning value to shareholders beyond just stock buybacks.
These insights from InvestingPro complement News Corp's repurchase strategy, suggesting a multifaceted approach to shareholder value creation. For investors seeking a deeper understanding of News Corp's financial health and prospects, InvestingPro offers 14 additional tips, providing a comprehensive analysis to inform investment decisions.
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