News Corporation Announces Stock Repurchase Program of $5 Billion

[Ichingcarpenter]

Source: Reuters


News Corporation today announced that its Board of Directors has approved a stock repurchase program totaling $5 billion.


This program increases the approximately $1.8 billion remaining under the Company’s current program to $5 billion. News Corporation is targeting to acquire the $5 billion of Class A common stock and Class B common stock from time to time over the next 12 months.



Repurchases under the program will be made through open market transactions. The timing of such transactions and class of shares purchased depend on a variety of factors, including market conditions and blackout periods. The Company is currently in a blackout period and does not intend to commence the repurchase program until that period expires on August 15, 2011. The share repurchase program does not obligate the company to repurchase any dollar amount or number of shares of its common stock, and the program may be extended, modified, suspended or discontinued at any time.

Read more: http://uk.reuters.com/article/2011/07/12/idUS134736+12-Jul-2011+BW20110712

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Murduch is doing this to prevent a takeover.

[dipsydoodle]

1. Yes

tactics.

[joeybee12]

2. Wish I'd win the lottery so i could take them over...nt

[banned from Kos]

6. News Corp has an incredible $43 billion in market value - compared to

the NYTimes $1.3 billion so it would take one hell of a lottery win.

But the bad thing is how much reach globally Murdoch has to spread his garbage.

[onehandle]

3. A 'white knight' needs to show up, buy News Corp and give control to Media Matters. nt

[democrat_patriot]

4. Just hope it ain't the Koch Brothers.

And they give it to Glen Beck.

[WingDinger]

5. Um, isnt this some other tactic? Like buying it back at bargain basement price?

[Ilsa]

7. Yep. I'm sure they have cash to take advantage of

The falling share price. They were probably waiting for this for a long time.

[salin]

8. bet this has to do with minimizing the chances that the share holder lawsuit

doesn't turn into the revolting hit parade of malfeasance here in the US - directly at NewsCorp as is happening to News Intl. in the UK.

Of course the lawsuit was treated like a little pesky gnat - until it was amended yesterday - to include practices revealed in the UK as evidence that the Board and Governance was acting foolishly with shareholder investments in order to enrich (original case - buying Elisabeth Murdoch's production company and reestablishing her as a member of the Board) and protect members of the Murdoch family.

Make fewer shareholders - minimize the possible damage of the lawsuit and hope it goes back to just seeming like a nuisance suit.