News Corp Announces Cessation of Class B Securities Amid Buy-Back Initiative

News Corporation has announced the cessation of 122,345 Class B common stock securities on August 22, 2025, as part of a buy-back initiative. This move may impact the company's stock structure and potentially affect market perception and investor relations. The most recent analyst rating on News Corporation Shs B Chess Depository Interests repr 1 Sh stock is a Buy with a A$62.00 price target.

News Corp (NASDAQ: NWSA, NASDAQ: NWS) has recently announced a significant move in its stock structure, set to impact the company's financial landscape and investor relations. On August 22, 2025, News Corp plans to cease 122,345 Class B common stock securities as part of its ongoing buyback initiative. This strategic decision is aimed at optimizing the company's capital allocation and potentially enhancing its stock price performance.

The cessation of these securities aligns with News Corp's broader strategy to manage its share count and improve its financial metrics. The company's ongoing stock repurchase programs, which include both Class A and Class B shares, have been authorized to repurchase up to $1 billion in aggregate [1]. This initiative, coupled with the recent announcement, reflects News Corp's commitment to rewarding shareholders and enhancing operational flexibility.

Market analysts have responded positively to this development, with the most recent rating on News Corp's Class B common stock repr 1 Shs B Chess Depository Interests repr 1 Sh stock being a Buy with an A$62.00 price target [2]. This rating suggests that analysts believe the stock is undervalued and has significant upside potential, which could be bolstered by the upcoming cessation of the Class B securities.

The cessation of these securities is part of a broader trend in the industry, where companies are increasingly focusing on share buybacks and capital returns to boost earnings per share (EPS) and shareholder value. However, it is essential to consider the potential risks associated with such capital allocation decisions, including market conditions and the company's ability to manage its balance sheet effectively.

In conclusion, News Corp's announcement to cease 122,345 Class B common stock securities represents a strategic move aimed at optimizing its capital structure and enhancing shareholder value. While this decision has received positive analyst ratings, it is crucial for investors to consider the broader market conditions and the company's ability to execute its plans effectively.

References:
[1] https://www.investing.com/news/sec-filings/news-corp-confirms-ongoing-1-billion-share-repurchase-authorization-93CH-4197707
[2] https://finance.yahoo.com/news/meltwater-partnership-help-news-corp-100535720.html