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What News (NWSA)'s Expanded US$1 Billion Buyback Plan Means For Shareholders

Simply Wall St · 3d ago
  • News Corporation recently updated investors on its ongoing stock repurchase programs, which authorize the company to buy back up to US$1.00 billion of its Class A and Class B common shares as part of its capital management efforts.
  • This renewed emphasis on buybacks highlights how News Corporation is using balance sheet flexibility to return capital while fine-tuning its equity base.
  • Next, we’ll examine how this expanded share repurchase focus could influence News Corporation’s investment narrative built around digital growth and capital returns.

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News Investment Narrative Recap

To own News Corp, you need to believe in its shift toward higher margin digital and data businesses, supported by steady capital returns. The refreshed US$1.00 billion buyback authority strengthens that capital return story but does not materially change the near term catalysts, which still centre on execution in digital subscriptions and real estate, or the biggest risk, that ongoing structural declines in print and legacy media continue to drag on overall growth.

The most relevant recent announcement alongside the expanded repurchase plan is News Corp’s ongoing semi annual dividend of US$0.10 per share for both Class A and Class B stock. Together, the dividend and buyback programs frame a clear capital return profile that sits alongside the key growth drivers in digital information services and real estate, but they do not remove the operational risks around weakening engagement trends and competitive pressure in core digital assets.

Yet this focus on capital returns sits against a risk investors should be aware of, particularly around...

Read the full narrative on News (it's free!)

News' narrative projects $9.3 billion revenue and $754.0 million earnings by 2028.

Uncover how News' forecasts yield a $36.69 fair value, a 40% upside to its current price.

Exploring Other Perspectives

NWSA 1-Year Stock Price Chart
NWSA 1-Year Stock Price Chart

Three Simply Wall St Community valuations for News Corp span from US$18.89 to about US$36.69 per share, reflecting very different expectations. When you set these side by side with the continuing pressure on print advertising and circulation, it underlines how important it is to weigh several distinct views before deciding how News Corp’s mix of digital growth and legacy risks could influence future performance.

Explore 3 other fair value estimates on News - why the stock might be worth as much as 40% more than the current price!

Build Your Own News Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your News research is our analysis highlighting 4 key rewards that could impact your investment decision.
  • Our free News research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate News' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.