News of buyback a winner

ASX-listed shares in News Corp have soared after the media major’s board approved a $US1bn ($1.4bn) stock-buyback.

The share price closed at $32.56 on Thursday, up 8.4 per cent, making News Corp (publisher of this paper) the day’s best performer on the ASX.

The benchmark ASX 200 index closed up 1 per cent at 7370.2 points.

Investors were encouraged after a positive lead from Wall Street as concerns about a default by debt-laden Chinese property giant Evergrande eased.

News Corp’s new buyback program will include the purchase of a combination of class A common shares and class B common shares.

“These landmark decisions follow our most profitable year since the launch of the new News Corp in 2013 and are a tangible sign of our confidence in the inherent value and enormous potential of our businesses,” News Corp chief executive Robert Thomson (pictured) said.

OMG chief executive Ivan Tchourilov said News Corp, via its streaming services, had been able to capture a lot of value during Covid lockdowns.

“The announced buyback will take over $1 billion worth of shares out of the market, effectively consolidating each shareholder’s stake in the company and amplifying their share of future profits that the company earns,” Mr Tchourilov said.