News Corp (Class B) Advances $1B Share Buyback Amid Steady Media Demand

News Corp (Class B) stock (ISIN: US65249B2088) progresses with its 2025 $1 billion repurchase program, deploying significant cash to retire Class A and B shares, signaling confidence in undervaluation as digital subscriptions and real estate services drive core growth.

News Corp (Class B) stock (ISIN: US65249B2088) is in focus as the company actively executes its 2025 Repurchase Program, authorizing up to $1 billion in buybacks of Nasdaq-listed Class A and Class B common stock. This capital return initiative, detailed in a recent SEC 8-K filing, underscores management's view that shares remain attractively valued despite a challenging media landscape marked by advertising volatility and digital transformation pressures. Investors, particularly those in Europe tracking US media plays via Xetra, should note the program's scale relative to the company's 142 million Class B shares outstanding, potentially supporting earnings per share accretion.

As of: 13.03.2026

By Eleanor Voss, Senior Media and Capital Markets Analyst - Tracking global content giants' strategies for European investors.

Buyback Execution Signals Financial Strength

News Corporation has ramped up its share repurchase activity under the 2025 program, with recent transactions including 2,900,433 shares for $70.4 million and 1,391,510 shares for $38.2 million, funded entirely in cash. The company partners with Goldman Sachs & Co. LLC to conduct these open-market purchases, reporting daily to the Australian Securities Exchange despite targeting only Nasdaq-listed shares, excluding ASX-listed CDIs. This disciplined approach highlights robust free cash flow generation from segments like Dow Jones, REA Group, and News Corp Australia, where digital subscriptions now outpace print declines.

With 367,377,731 Class A shares and 142,083,315 Class B shares on issue, the $1 billion authorization represents about 5-7% of total market cap at current levels, a meaningful commitment. For **News Corp (Class B)** holders, this reduces share count, potentially boosting metrics like adjusted EBITDA per share, which stood at strong levels in recent quarters from recurring revenue streams. European investors, accessing the stock via Frankfurt or Xetra, benefit from this as it aligns with DACH preferences for shareholder-friendly capital allocation in mature media firms.

Dual-Class Structure and Investor Implications

News Corp operates as a dual-class issuer, with Class B shares (ISIN: US65249B2088) carrying 10 votes per share versus one for Class A, controlled by the Murdoch family through voting trusts. This setup prioritizes long-term strategy over short-term activism, a point of contention for some institutional holders but a stabilizer in volatile media markets. Class B trades at a slight discount to Class A, offering value-oriented investors higher yield potential amid buybacks that treat both classes equally.

The buyback's focus on both classes mitigates dilution risks and supports convergence in pricing, beneficial for European portfolios diversified into US content leaders. In a DACH context, where governance scrutiny is high, News Corp's transparent ASX disclosures enhance appeal for Swiss and German funds emphasizing capital returns over growth hype.

Core Business Drivers Fueling Cash Deployment

News Corp's resilience stems from diversified revenue: Dow Jones (Wall Street Journal, Barron's) generates stable subscription growth, with digital subs surpassing 5 million amid premium content demand. REA Group, the Australian real estate portal, benefits from housing market recovery, posting double-digit revenue gains, while News Corp Australia navigates ad softness with cost controls. These segments produced adjusted EBITDA margins above 20% in recent periods, funding buybacks without debt increase.

For European investors, REA's exposure mirrors Europe's property tech boom, akin to Rightmove or Immowelt, offering a proxy for regional recovery. The company's move beyond legacy print - now under 20% of revenue - positions it for AI-enhanced content and data services, key in a sector disrupted by Big Tech.

Operating Leverage and Margin Expansion

Cost discipline has widened operating leverage, with SG&A efficiencies offsetting ad market headwinds. Digital transformation yields high-margin recurring revenues: subscriptions at 70%+ margins versus cyclical ads. Recent quarters show EBITDA growth outpacing revenue, supporting $1B+ in annual free cash flow, ample for buybacks and a modest dividend.

DACH investors, focused on cash conversion, appreciate this profile, contrasting with pure-play publishers. Risks include print circulation declines, but offset by real estate and professional info services stability.

European and DACH Investor Perspective

While primarily Nasdaq-listed, News Corp (Class B) trades on Xetra under US65249B2088, accessible to Eurozone retail and institutions via Deutsche Boerse. German investors, holding via ETFs or direct, value the buyback as a defense against EUR/USD swings, with proceeds in USD bolstering returns. Swiss funds see parallels to local media like Tamedia, but with global scale and Murdoch stewardship.

In broader Europe, amid regulatory scrutiny on media consolidation, News Corp's compliance record reassures. The $1B program signals no M&A urgency, prioritizing returns - a DACH hallmark.

Cash Flow, Balance Sheet, and Capital Allocation

News Corp maintains a fortress balance sheet: net cash position exceeds $1 billion, investment-grade rating intact. Free cash flow funds buybacks (50%+ payout), dividends (yielding ~1%), and growth capex like AI tools for journalism. No major debt maturities loom, flexibility high.

Trade-offs: aggressive buybacks limit acquisitions, but enhance ROE. For patient investors, this accretes value, especially if media multiples compress further.

Competitive Landscape and Sector Context

Peers like New York Times and Gannett chase subscriptions, but News Corp differentiates via real estate (REA) and B2B (Dow Jones). Ad recovery lags Google/Facebook dominance, yet premium inventory commands pricing power. Sector tailwinds: election cycles boost news demand; housing upcycles lift REA.

Technical Setup and Market Sentiment

Chart shows Class B consolidating above key support, buyback volume providing floor. Sentiment neutral-positive post-filing, with analysts viewing program as undervaluation catalyst. Volatility low, appealing for income strategies.

Catalysts, Risks, and Outlook

Catalysts: accelerated buybacks, REA growth, Dow Jones AI monetization. Risks: ad recession, regulatory probes, family control dilution fears. Outlook: steady execution supports mid-single-digit EPS growth, attractive for value investors.

Disclaimer: Not investment advice. Stocks are volatile financial instruments.