Rupert Murdoch’s News Corp. announced this week that it authorized a $1 billion stock repurchase program, which will replace its previous $500 million Class A repurchase program that was approved in 2013, according to the Securities Exchange Commission filing.
Robert Thomson, the CEO of the company, said its board of directors approved the buyback after its most profitable year since "the launch of the new News Corp" in 2013. He struck a bullish tone about the stock and said the business has "enormous potential."
"With the Board’s active support, we are acutely focused on long-term value for investors, balancing strategic investments and capital returns," he said in a statement. "Our robust cash balance and strong free cash flow have enabled us to launch a much larger, more aggressive buyback program that we intend to begin after our quiet period ends."
The Murdoch Family are the largest individual shareholders in both News Corp. and FOX Corp., the parent company of FOX Business and Fox News.
In an investor conference earlier this week, Thomson praised longer-term projects that are coming to fruition, including the success of Realtor and the embrace of digital on its news platforms.