Navigating the Digital Shift: News Corp's AI-Driven Resurgence and the Future of Print Media

In an era where print media faces relentless disruption, News Corp has emerged as a case study in resilience. The company's 2025 strategic pivot—centered on AI integration, IP monetization, and disciplined capital allocation—has not only stabilized its print operations but also redefined its role in the digital-first media ecosystem. For investors, the question is no longer whether print media can survive, but how News Corp's AI-driven transformation is unlocking new value for shareholders while preserving the relevance of legacy formats.

The AI-First Strategy: From Defense to Offense

News Corp's approach to AI in 2025 is a masterclass in dual-purpose innovation. On one hand, the company has aggressively defended its intellectual property (IP) by suing AI firms like Perplexity for unauthorized content scraping. CEO Robert Thomson's mantra—“AI IP powers AI”—has positioned News Corp as a gatekeeper of high-quality data, a critical asset in training generative models. This legal stance has not only protected revenue streams but also opened licensing opportunities with tech giants like OpenAI and Amazon, transforming News Corp into a supplier of “verified content” for the AI era.

On the other hand, the company has weaponized AI to enhance its own offerings. The Dow Jones segment, for instance, now derives 82% of its revenue from digital sources, driven by AI-powered tools like Factiva's generative AI and AI-driven audiobook partnerships with Spotify. These innovations have boosted audiobook sales by 13% and professional services revenue by 11%, illustrating how AI can amplify the value of News Corp's content without cannibalizing its core assets.

Print Media's Digital Reinvention

While print advertising revenue in News Corp's UK and Australian divisions declined by 4–8% in 2025, the company's cost-optimization strategies have mitigated these losses. A joint venture with DMG Media in the UK consolidated printing operations, reducing costs and improving EBITDA margins by 15% in the News Media segment. Simultaneously, digital subscriptions have become a lifeline: the Times and Sunday Times now boast 640,000 digital subscribers, while News Corp Australia's digital revenue contribution rose to 39% in Q4 2025.

The key to print media's long-term viability lies in News Corp's ability to treat print as a complementary channel rather than a standalone business. By leveraging AI to personalize digital content and optimize print distribution, the company has created a hybrid model where print retains its brand equity while digital drives scalability. For example, the Sun and New York Post have used AI-driven analytics to refine their digital user acquisition strategies, even as print circulation declines.

Shareholder Value: Capital Discipline Meets AI-Driven Growth

News Corp's 2025 financial strategy has been as disciplined as it is innovative. A $1.3 billion share buyback program, funded by $2.1 billion in cash reserves and $539 million in free cash flow, underscores management's confidence in the stock's undervaluation. This move, coupled with a current ratio of 1.68, signals a company prioritizing shareholder returns over speculative bets—a stark contrast to peers chasing AI hype without clear monetization.

The results speak for themselves: Total Segment EBITDA surged by 20% year-over-year to $478 million in 2025, with adjusted EPS rising to $0.33 from $0.27. The Digital Real Estate Services division, powered by AI-driven analytics, contributed $473 million in Q3 2025 revenue—a 13% increase—while the Dow Jones segment maintained a 25% EBITDA margin. These figures highlight how News Corp's AI investments are not just future-proofing the company but actively driving margin expansion.

The Investment Case: A Long-Term Buy-and-Hold Opportunity

For investors, News Corp's 2025 strategy offers a compelling mix of defensive and offensive attributes. The company's focus on high-margin B2B segments (94% of 2025 profits) and its leadership in professional information services (via acquisitions like Dragonfly Intelligence) provide insulation from the volatility of consumer-driven print media. Meanwhile, its AI licensing deals and legal actions position it as a beneficiary of the AI content economy, a sector projected to grow exponentially.

However, risks remain. Print media's structural decline is unlikely to reverse, and AI's role in content creation could eventually erode the value of traditional journalism. Yet News Corp's proactive stance—monetizing IP, automating workflows, and prioritizing digital subscriptions—suggests it is ahead of the curve in adapting to these challenges.

Conclusion: A Blueprint for Media's Future

News Corp's 2025 transformation demonstrates that print media's survival in the digital age hinges not on resisting change but on embracing it. By integrating AI to enhance productivity, protect IP, and drive shareholder value, the company has redefined its role as both a content creator and a technology enabler. For investors seeking a media stock with a clear path to long-term growth, News Corp's disciplined execution and strategic foresight make it a standout opportunity in an otherwise fragmented sector.