NEW YORK - News Corp (NASDAQ:NWSA) (NASDAQ:NWS, NWSA; ASX:NWS, NWSLV), a global media and information services company, confirmed today that a stockholder proposal has been submitted for consideration at the upcoming 2024 Annual Meeting of Stockholders. The proposal suggests a recapitalization plan to eliminate the company's dual-class capital structure.
The current dual-class structure at News Corp has been a topic of discussion, with the Board expressing that it has contributed to the company's stability and success. According to the Board, this structure has supported News Corp's strategic transformation and has resulted in long-term outperformance for all stockholders.
In recent years, News Corp has navigated the digital revolution, transforming its revenue and earnings base through digital reinvestment, strategic acquisitions, divestments, and cost management initiatives. These efforts have reportedly led to record profitability and significant value creation for stockholders. The Board also highlighted their role in securing landmark content licensing deals with major technology platforms, which they believe positions the company well for future growth, including in the AI sector.
News Corp's stock performance over the past five years is cited as having outperformed both the S&P 500 and its peer group. However, stockholders are currently not required to take any action regarding the proposal.
The company plans to file preliminary materials related to the 2024 Annual Meeting with the Securities and Exchange Commission (SEC) shortly. These materials will provide stockholders with important information about the proposal and any other relevant documents.
News Corp, headquartered in New York, operates primarily in the United States, Australia, and the United Kingdom. The company's portfolio includes digital real estate services, subscription video services in Australia, news and information services, and book publishing. Content and products from News Corp are distributed and consumed globally.
The information regarding the stockholder proposal is based on a press release statement from News Corp.
"In other recent news, News Corporation reported record profitability in its fourth quarter, marking a strong finish to fiscal year 2024. The company's revenues increased by 6% to nearly $2.6 billion, while profitability rose by 11% to $380 million. Key contributors to this performance were the book publishing, digital real estate services, and Dow Jones segments.
News Corporation also announced a partnership with OpenAI and plans for digital expansion and cost efficiencies in fiscal 2025. However, the company acknowledged challenges in the U.K. digital advertising due to platform algorithm changes.
In other developments, investment firm Starboard Value LP has called for News Corp to eliminate its dual-class share structure. The firm submitted a non-binding proposal for vote at News Corp's 2024 Annual Meeting, arguing that the current structure does not serve the best interests of shareholders and is reflective of poor corporate governance. These are the latest developments in the company's ongoing efforts to navigate the evolving media landscape."
InvestingPro Insights
As News Corp (NASDAQ:NWS) approaches its 2024 Annual Meeting of Stockholders, where a pivotal recapitalization plan will be discussed, recent financial metrics from InvestingPro provide a snapshot of the company's current valuation and performance. With an adjusted market capitalization of $15.8 billion, News Corp's strategic initiatives in digital reinvestment and content licensing appear to be reflected in its valuation. The company's Price to Earnings (P/E) ratio stands at 59.55, with an adjusted P/E ratio for the last twelve months as of Q4 2024 at 43.71, indicating investor confidence in future earnings growth.
InvestingPro data also shows a Gross Profit Margin of 50.41% for the same period, illustrating a strong ability to translate sales into profit. The Revenue Growth rate for the last twelve months as of Q4 2024 was recorded at 2.09%, with a more pronounced quarterly growth rate of 5.92%, signaling an upward trajectory in the company's earnings.
InvestingPro Tips highlight the company's PEG Ratio of 0.74 for the last twelve months as of Q4 2024, suggesting that News Corp's stock price may be undervalued based on its earnings growth projections. Additionally, the Price to Book ratio of 1.9 further supports the potential for investment value. For investors seeking more insights, InvestingPro offers numerous additional tips, providing a comprehensive analysis of News Corp's financial health and investment potential.
With a focus on News Corp's recent digital and strategic achievements, the InvestingPro data underscores the company's efforts in securing its position in the competitive media landscape. As the stockholder proposal for recapitalization is contemplated, these metrics offer a quantitative backdrop to the qualitative success stories presented by the company's Board.
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