News (NWSA) | News Based Sentiment Analysis

• On September 8, 2025, News Corp finalized a deal resolving a family succession dispute, confirming Lachlan Murdoch as the sole heir apparent to control the Murdoch family trust. This involved the sale of shares held by Prudence MacLeod, Elisabeth Murdoch, and James Murdoch, raising $1.27 billion from the secondary offering of approximately 14.18 million shares, representing 7.4% of the company’s market capitalization. This complete exit of the trusts from holding any direct or indirect interest in the company marks a significant shift in ownership.
• Following the resolution of the family dispute, News Corporation entered into a new stockholders agreement on September 8, 2025, with LGC Holdco, LLC, and trusts established for Lachlan K. Murdoch, Grace Murdoch, and Chloe Murdoch. This agreement formalizes the new ownership structure and governance arrangements following the transfer of control.
• A secondary offering of 14,071,293 Class B common stock shares closed on September 10, 2025, at $31.98 per share, sold by trusts associated with Prudence MacLeod, Elisabeth Murdoch, and James Murdoch. News Corp itself did not receive any proceeds from this sale.
• Despite the significant ownership changes, News Corp shares initially declined following the succession announcement, falling 1% in morning trading on September 9, 2025, and 0.50% in after-hours trading, reversing a prior 1.70% gain. However, the stock rebounded to close at $32.27 on September 12, 2025, with after-hours trading at $32.60 (+1.02%).
• Financial analysis as of September 7, 2025, revealed a 6% stock price increase over three months, alongside a 58% year-over-year surge in Q2 2025 net income to $306 million, though revenue growth remained stagnant at 0.3% annualized. Discrepancies were noted in ROE calculations, ranging from 5.95% to 14.14%.
• Analysts maintained a generally positive outlook, with a 'Strong Buy' consensus rating and an average price target of $38.28 as of September 10, 2025, forecasting an 18.62% increase, with targets ranging from $32.7 to $43. However, the consensus EPS forecast for the September 2025 quarter decreased by 13.64% from $0.22 to $0.19.
• News Corporation declared a semiannual dividend of $0.10 per share on September 10, 2025, payable on October 8, 2025, to stockholders of record as of September 10, 2025. The ex-dividend date was September 10, 2025.
• Insider transfers occurred on September 6, 2025, with the Murdoch Family Trust transferring 14,250 Class A shares and 76,655,870 Class B shares internally to various family trusts for no consideration. The MFT SH Family Trust also executed a 'Sell' transaction on September 10, 2025.

The Investment Story: September was a transformative month for News Corp, dominated by the resolution of a long-standing family dispute and a subsequent shift in ownership. While the initial market reaction was slightly negative, the stock showed resilience, and analyst sentiment remained largely positive despite lowered EPS forecasts.

What It Means for Investors: The resolution of the succession issue removes a significant overhang, but the secondary offering and insider selling introduce some uncertainty. The dividend provides a steady return, but investors should monitor the impact of the ownership changes on the company's strategic direction and financial performance.

Looking Ahead: Investors should closely watch News Corp's Q1 fiscal 2026 earnings report on November 6, 2025, and pay attention to any further analyst revisions. Monitoring the stock's performance following the ex-dividend date and assessing the impact of the new ownership structure will be crucial.

The Bottom Line: News Corp navigated a pivotal month with a successful resolution to its family succession dispute. While some short-term volatility is expected, the company's underlying fundamentals and positive analyst coverage suggest a cautiously optimistic outlook.