NEW YORK – News Corporation, the global media and information services company, has announced the continuation of its share repurchase program, reaffirming its commitment to buy back up to $1 billion of its Class A and Class B common stock. This update was disclosed in a recent 8-K filing with the U.S. Securities and Exchange Commission (SEC).
The repurchase program, which is part of a broader strategy to enhance shareholder value, allows the company to reacquire shares from time to time. The decision to buy back shares is influenced by various factors, including the stock's market price, prevailing market conditions, applicable legal requirements, and other investment opportunities.
In compliance with the Australian Securities Exchange (ASX) rules, where News Corp (NASDAQ:NWSA) is also listed, the company provides daily disclosures of transactions made under the repurchase program. Details of these transactions have been attached as exhibits in the SEC filing for investor transparency.
The filing includes "forward-looking statements" regarding the company's intentions concerning the repurchase program. However, News Corp cautions that actual results may differ materially from these statements due to market volatility, changes in stock price, and other risks and uncertainties. These factors are further detailed in the company's filings with the SEC.
The continuation of the share buyback program reflects News Corp's confidence in its financial strength and its dedication to delivering value to its shareholders. As of the date of the report, the company has not specified the exact number of shares to be repurchased nor the timeline for the program's completion.
Investors are encouraged to review the company's quarterly and annual reports for more information about the repurchase program and its impact on the company's financials. The latest developments in the program are based on information provided to the ASX, as outlined in the attached exhibits of the SEC filing.
This news is based on statements from a recent SEC filing by News Corp and is intended to provide shareholders and the market with factual updates on the company's financial activities.
In other recent news, News Corp, through its subsidiary REA Group Ltd, has issued a revised non-binding proposal to acquire all share capital of UK-based Rightmove (OTC:RTMVY) plc. The details of the revised proposal have not been disclosed. This move aligns with News Corp's strategic activities in the digital real estate advertising space. However, as the proposal is non-binding, there is no guarantee that a formal offer will be made or that any transaction will occur.
Simultaneously, News Corp continues to demonstrate its commitment to shareholder value through its ongoing $1 billion stock repurchase program. The company has reported a 6% rise in Q4 revenue, reaching approximately $2.6 billion, and an 11% increase in profitability to $380 million.
Analysts from Loop Capital have maintained their Buy rating on News Corp with a steady price target of $39.00, while Morgan Stanley has upgraded its stock price target for the company to $35.00. These ratings suggest a positive outlook on the company's strategic financial maneuvers and potential for growth, particularly in the digital real estate sector. These are recent developments that provide insights into News Corp's strategic financial decisions and potential growth areas.
InvestingPro Insights
News Corporation's share repurchase program aligns with its strong financial position, as reflected in recent InvestingPro data. The company's market capitalization stands at $15.35 billion, underscoring its significant presence in the media industry. News Corp's revenue for the last twelve months as of Q4 2024 reached $10.09 billion, with a notable revenue growth of 5.92% in the most recent quarter.
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 ongoing share buyback initiative. Another tip indicates that News Corp has maintained dividend payments for 11 consecutive years, demonstrating a commitment to shareholder returns beyond the repurchase program.
These insights complement the article's focus on News Corp's financial strategy and shareholder value creation. For investors seeking a deeper understanding of News Corp's financial health and future prospects, InvestingPro offers 13 additional tips, providing a comprehensive analysis to inform investment decisions.
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