Core Insights - The Murdoch family is experiencing significant internal conflict, particularly following a $5 billion settlement that has led to a permanent estrangement between Rupert Murdoch and three of his billionaire children [1][4][9] - The family’s reputation has suffered due to leaks and revelations, particularly from competitors like the New York Times, which have exposed their internal struggles [2] - The recent sale of $1.37 billion worth of voting stock in Fox Corp and News Corp marks a significant financial maneuver amidst the family’s ongoing disputes [3][7] Financial Transactions - The settlement allowed the dissenting children to receive $3.3 billion for their 50% stake in the Murdoch Family Trust, with each child facing substantial tax liabilities on their respective $1.7 billion payouts [9] - Team Lachlan, aligned with Rupert, is required to raise $1.95 billion in cash, having already secured $1.37 billion from the largest family share sale in history [11] - A margin loan of $1 billion has been taken against their reduced controlling stake in both companies, with a significant portion of their voting shares pledged to a financier [12] Corporate Strategy - The Lachlan-Rupert faction is considering a merger of News Corp and Fox Corp, a plan previously hindered by James Murdoch, which may now be revisited [16] - The potential demerger of News Corp's 61% stake in REA Group could provide Team Lachlan with a $3.36 billion stake, allowing them to manage their debt without losing control [15] Market Impact - Following the sale of shares, Fox Corp's stock price fell by 6.67%, indicating immediate market reaction to the family’s financial decisions [7] - The combined market value of Fox Corp and News Corp is approximately $67 billion, with the family’s control becoming increasingly complex due to the recent transactions [8] Future Considerations - The settlement includes a long-term standstill agreement preventing the departing beneficiaries from acquiring shares in Fox and News Corp, raising questions about future competition and potential conflicts [20] - The ongoing drama within the Murdoch family, particularly regarding their relationship with Donald Trump and the implications of his lawsuits against News Corp, suggests that the situation may continue to evolve [20]

Core Insights - Legacy media and entertainment companies have experienced a significant increase in their "Growth" scores, indicating a potential sector turnaround [1][3]. Group 1: Company Performance - News Corp. saw its growth score rise by 71.07 points, from 27.15 to 98.22, driven by its Dow Jones subsidiary and a shift away from low-growth assets [4]. - Fox Corp. experienced a 61.12 point increase in its Edge score, reaching 94.61, attributed to strong fourth quarter performance and a 17% year-over-year revenue growth [6]. - Formula One Group's Growth score surged by 47.71 points to 99.49, primarily due to a 41% year-over-year revenue increase and a 126% rise in earnings [8]. Group 2: Strategic Developments - News Corp. refocused on core assets, enhancing its growth potential [4]. - Fox Corp. is launching a new direct-to-consumer service, Fox One, which is expected to drive recurring revenue [7]. - Formula One Group expanded its portfolio by acquiring MotoGP, adding a significant franchise to its operations [9].

Core Insights - The article highlights the significant wealth accumulation of new immigrants in the United States, with the top ten billionaires born overseas amassing a total wealth of approximately $867 billion, comparable to Switzerland's GDP [1][2]. Group 1: Individual Billionaires - Elon Musk has a net worth of $393.1 billion and is the founder of Tesla and SpaceX, originally from South Africa [3][6]. - Sergey Brin, co-founder of Google, has a net worth of $139.7 billion and was born in Russia [9][11]. - Jensen Huang, co-founder of Nvidia, has a net worth of $137.9 billion and hails from Taiwan [12][16]. - Thomas Peterffy, founder of Interactive Brokers, has a net worth of $67.9 billion and was born in Hungary [13][15]. - Miriam Adelson and family, owners of the Las Vegas Sands casino empire, have a net worth of $33.4 billion and were born in Israel [16][19]. - Rupert Murdoch and family, owners of a global media empire, have a net worth of $24 billion and were born in Australia [20][22]. - Peter Thiel, co-founder of PayPal, has a net worth of $21.8 billion and was born in Germany [23][25]. - Jay Chaudhry, founder of cloud security company Zscaler, has a net worth of $17.9 billion and was born in India [27][29]. - Jan Koum, co-founder of WhatsApp, has a net worth of $16.9 billion and was born in Ukraine [30][32]. - Kingston Technology co-founder Dov Ziv has a net worth of $14.1 billion and was born in China [33][35].

Core Viewpoint - News Corp CEO Robert Thomson has called for the White House to take action against AI companies that are allegedly using copyrighted material without permission, highlighting the impact on authors and publishers, including President Trump's works [1][4][5] Group 1: AI and Copyright Issues - Thomson criticized AI firms for "cannibalizing" copyrighted works, specifically mentioning Trump's book "The Art of the Deal," which he claims has been exploited by AI systems [1][4] - The lawsuit against Meta involved over 190,000 protected works, including Trump's book, raising questions about the fairness of creators being deprived of their rights [2][4] - News Corp is suing AI startup Perplexity for allegedly stealing content to train its language model, emphasizing the need for AI companies to compensate content creators [5][17] Group 2: Economic and Competitive Concerns - Thomson warned that the practices of AI firms could undermine America's competitive edge, which relies on creativity and innovation rather than just technology [6] - He urged AI companies to allocate a portion of their substantial investments in infrastructure towards compensating content creators, highlighting that they are spending tens of billions on data centers and chips [10][9] - News Corp reported a profit of $648 million and announced a $1 billion stock buyback, indicating strong financial performance amidst these challenges [16] Group 3: Long-term Implications for Content Quality - Thomson expressed concerns about the long-term health of the content ecosystem, arguing that AI companies should support diverse and reliable sources of information rather than creating a "deeply derivative" system [13][12] - He noted that audiences are seeking profound and purposeful content, which could be jeopardized by the current practices of AI firms [13] - News Corp has been vocal in demanding compensation from AI firms for the use of their content, indicating a proactive stance in protecting intellectual property rights [14][18]

Core Insights - News Corporation (NWSA) reported fourth-quarter fiscal 2025 earnings of 19 cents per share, matching the Zacks Consensus Estimate, with a 5% decrease from the previous year [1] - Revenues reached $2.11 billion, a 1% year-over-year increase, surpassing the consensus estimate by 0.26%, driven by growth in Digital Real Estate Services and Dow Jones segments [1][9] Financial Performance - Adjusted revenues were flat year over year, while total EBITDA increased by 6% to $329 million [3] - The company ended the fiscal fourth quarter with cash and cash equivalents of $2.4 billion, borrowings of $1.94 billion, and stockholder equity of $8.77 billion [21] Segment Performance Digital Real Estate Services - Revenues increased by 4% year over year to $466 million, with REA Group contributing significantly [4] - Move revenues rose by 3% to $148 million, driven by strong growth in sellers, new homes, and rentals [5] - Average monthly unique users of Realtor.com fell by 3% year over year to 72 million, with lead volume decreasing by 13% [5] Dow Jones - Revenues grew by 7% year over year to $604 million, supported by higher circulation and subscription revenues [7] - Digital revenues accounted for 83% of total revenues, up from 81% in the previous year [7] - Total average subscriptions to Dow Jones' consumer products increased by 7% to 6.3 million [12] Book Publishing - Revenues in the Book Publishing segment declined by 4% year over year to $494 million, attributed to softer consumer spending [14] - Digital sales decreased by 3%, with audiobook sales down by 7% [15] News Media - Revenues fell by 4% year over year to $545 million, impacted by lower advertising revenues [16] - Digital revenues represented 38% of the News Media segment's revenues, up from 37% in the prior year [18] Advertising Revenue - Advertising revenues increased by 2% year over year, with print advertising up by 3% and digital advertising up by 1% [11] - Digital advertising contributed 65% of total ad revenues, slightly down from 66% in the previous year [11]

[PART I](index=4&type=section&id=PART%20I) This section provides an overview of News Corporation's global media and information services businesses, including its segments, operations, and key resources [ITEM 1. BUSINESS](index=4&type=section&id=ITEM%201.%20BUSINESS) News Corporation is a global diversified media and information services company operating five segments, focusing on content creation and distribution across digital and traditional platforms - News Corporation is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services to consumers and businesses worldwide[14](index=14&type=chunk) - The Company's operations are organized into five reportable segments: Dow Jones, Digital Real Estate Services, Book Publishing, News Media, and Other[15](index=15&type=chunk) - The Company's diversified revenue base includes recurring subscriptions, circulation sales, advertising sales, sales of real estate listing products, licensing fees, and other consumer product sales[15](index=15&type=chunk) Fiscal Year Ended June 30, 2025 Segment Revenues and EBITDA | Segment | Revenues (in millions) | EBITDA (in millions) | | :----------------------- | :--------------------- | :------------------- | | Dow Jones | $2,331 | $588 | | Digital Real Estate Services | $1,802 | $601 | | Book Publishing | $2,149 | $296 | | News Media | $2,170 | $153 | | Other | — | $(223) | [Overview](index=4&type=section&id=OVERVIEW) News Corporation is a global media and information services company operating five segments, emphasizing quality content, product innovation, and AI monetization - News Corporation is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services to consumers and businesses throughout the world[14](index=14&type=chunk) - The Company's operations are organized into five reportable segments: Dow Jones, Digital Real Estate Services, Book Publishing, News Media, and Other[15](index=15&type=chunk) - The Company's focus on quality and product innovation has enabled it to capitalize on the shift to digital consumption and create opportunities for more effective monetization, including new licensing and partnership arrangements with large technology companies and AI-focused platforms[14](index=14&type=chunk) [Dow Jones](index=5&type=section&id=Dow%20Jones) The Dow Jones segment delivers global news and business information to consumers and enterprises, diversifying revenue across subscriptions, advertising, and licensing, while facing intense AI-driven competition - The Dow Jones segment is a global provider of news and business information, distributing content and data through various owned and off-platform media channels[21](index=21&type=chunk) - Products target individual consumers (The Wall Street Journal, Barron's, MarketWatch, Investor's Business Daily) and enterprise customers (Dow Jones Risk & Compliance, Dow Jones Energy, Factiva, Dow Jones Newswires)[21](index=21&type=chunk)[22](index=22&type=chunk)[32](index=32&type=chunk) Average Daily Consumer Subscriptions (Three Months Ended June 30, 2025) | (in 000's) | Digital-only subscriptions | Print subscriptions | Total subscriptions | | :----------------------- | :------------------------- | :------------------ | :------------------ | | The Wall Street Journal | 4,126 | 412 | 4,538 | | Barron's Group | 1,319 | 113 | 1,432 | | Total Consumer | 5,719 | 542 | 6,261 | - The Dow Jones segment faces increasing competition for both circulation and advertising revenue from alternative news and information sources, programmatic advertising buying channels, and AI aggregators and other emerging technology platforms[35](index=35&type=chunk) [Digital Real Estate Services](index=8&type=section&id=Digital%20Real%20Estate%20Services) This segment includes REA Group and Move (Realtor.com®), specializing in property advertising and data services, generating revenue from listings and subscriptions in competitive digital markets - The Digital Real Estate Services segment consists of a **61.4% interest in REA Group** (Australia, India) and an **80% interest in Move** (U.S.), which primarily operates Realtor.com®[37](index=37&type=chunk)[41](index=41&type=chunk)[43](index=43&type=chunk) - REA Group's realestate.com.au had **132.2 million average monthly visits** and **12.1 million unique visitors** for the year ended June 30, 2025, significantly outperforming its nearest competitor[39](index=39&type=chunk) - Realtor.com® and its mobile sites had approximately **72 million average monthly unique users** during the quarter ended June 30, 2025[43](index=43&type=chunk) - Revenue is primarily generated through property advertising listing products, monthly advertising subscriptions from real estate agents and developers, lead generation products, referral-based services, and commissions from lenders[40](index=40&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) [Book Publishing](index=9&type=section&id=Book%20Publishing) HarperCollins, the world's second-largest consumer book publisher, operates globally, publishing diverse content in print and digital formats, with digital sales representing 24% of fiscal 2025 consumer revenues - The Book Publishing segment consists of HarperCollins, the **second largest consumer book publisher in the world**, with operations in 15 countries[44](index=44&type=chunk) - HarperCollins publishes and distributes consumer books globally through print and digital formats, including e-books and downloadable and streaming audiobooks[44](index=44&type=chunk) - Digital sales represented approximately **24% of global consumer revenues** for the fiscal year ended June 30, 2025[47](index=47&type=chunk) - Revenues are significantly affected by the timing of releases and are typically highest during the Company's second fiscal quarter due to increased demand during the end-of-year holiday season[49](index=49&type=chunk) [News Media](index=10&type=section&id=News%20Media) The News Media segment, including News Corp Australia and News UK, generates revenue from circulation, subscriptions, advertising, and licensing, facing intense competition from digital and AI platforms - The News Media segment consists primarily of News Corp Australia, News UK and the New York Post, along with Wireless Group (talkSPORT, Virgin Radio, Talk), Australian News Channel (Sky News Australia), and Storyful[51](index=51&type=chunk) - News Corp Australia's digital mastheads had approximately **993,000 aggregate digital closing subscribers** as of June 30, 2025[52](index=52&type=chunk) News Corp Australia Key Properties (as of June 30, 2025) | Masthead | Total Paid Subscribers (Print and Digital) | Total Monthly Audience (Print and Digital) | | :----------------- | :----------------------------------------- | :--------------------------------------- | | The Australian | 335,903 | 4.8 million | | The Daily Telegraph | 151,336 | 4.6 million | | Herald Sun | 153,983 | 4.8 million | | The Courier Mail | 144,044 | 3.7 million | | The Advertiser | 106,696 | 2.2 million | News UK News Portfolio (as of June 30, 2025) | Publication | Print Average Issue Readership | Paid Subscribers (Print/Digital) | Monthly Global Unique Users | | :------------------ | :----------------------------- | :------------------------------- | :-------------------------- | | The Sun (Mon – Sat) | 1,597,000 | N/A | 87 million | | The Sun on Sunday | 1,655,000 | N/A | N/A | | The Times (Mon – Sat) | 605,000 | 97,000 (print) / 640,000 (digital) | N/A | | The Sunday Times | 1,113,000 | 85,000 (print) / 640,000 (digital) | N/A | - The Post Digital Network averaged approximately **89.2 million unique users per month** during the quarter ended June 30, 2025[61](index=61&type=chunk) [Other](index=13&type=section&id=Other) The 'Other' segment encompasses general corporate overhead, strategic costs, and expenses related to U.K. Newspaper Matters - The Other segment includes the Company's general corporate overhead expenses, strategy costs and costs related to the U.K. Newspaper Matters[63](index=63&type=chunk) [Governmental Regulation](index=13&type=section&id=Governmental%20Regulation) News Corporation's global operations are subject to extensive and evolving governmental regulations, including data privacy, benchmark, and press laws, impacting business practices and costs - The Company's activities are subject to regulation in numerous jurisdictions, with new laws and changes in existing ones potentially impacting its interests[64](index=64&type=chunk) - The Company is subject to laws and regulations governing the collection, use, sharing, transfer, storage, and retention of personal data, as well as data security, including CCPA, GDPR, UK GDPR, and the AU Privacy Act[67](index=67&type=chunk)[68](index=68&type=chunk)[70](index=70&type=chunk) - U.K. operations are subject to press-related regulations (PRP, IPSO, Digital Markets, Competition and Consumers Act 2024) and radio broadcasting regulations (Ofcom)[73](index=73&type=chunk)[74](index=74&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) [Intellectual Property](index=16&type=section&id=Intellectual%20Property) News Corporation's intellectual property, including copyrights and trademarks, is crucial for revenue, facing threats from unauthorized digital use and generative AI, requiring robust protection strategies - The Company's intellectual property assets include copyrights in its digital and print newspapers, books and other content and technologies; trademarks in names and logos; trade names; domain names; and licenses of intellectual property rights[78](index=78&type=chunk) - Unauthorized use, including in the digital environment and as a result of recent advances in AI, particularly generative AI, presents a threat to revenues from products and services based on intellectual property[78](index=78&type=chunk) - The Company seeks to prevent unauthorized exploitation of its content by generative AI tools through paywalls, bot management, AI crawler blocking tools, opt-out directives, and legal remedies[78](index=78&type=chunk) [Raw Materials](index=17&type=section&id=Raw%20Materials) As a major publisher, News Corporation relies on various types of paper, procured globally, with current supply sources deemed adequate - As a major publisher of newspapers, magazines and books, the Company utilizes substantial quantities of various types of paper[80](index=80&type=chunk) - The Company believes that under present market conditions, its sources of paper supply used in its publishing activities are adequate[80](index=80&type=chunk) [Human Capital](index=17&type=section&id=Human%20Capital) News Corporation's human capital strategy focuses on attracting, developing, and retaining a diverse workforce, fostering a principled culture, and providing competitive benefits and training - News Corp's workforce is critical to the creation and delivery of its premium and trusted content and a key contributor to the success of the Company[81](index=81&type=chunk) - As of June 30, 2025, the Company had approximately **22,300 employees** globally, with significant presence in the U.S., U.K., and Australia[82](index=82&type=chunk) - Key focus areas of the Company's human capital management strategy include Culture and Values (ethical conduct, compliance training), Health, Safety, Security and Wellbeing (programs for mental/physical health, physical security infrastructure), Compensation and Benefits (competitive salaries, incentive programs, retirement/healthcare benefits), and Training, Development and Engagement (on-the-job learning, workshops, career planning)[81](index=81&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk)[87](index=87&type=chunk) [Explanatory Note Regarding Certain Metrics](index=19&type=section&id=Explanatory%20Note%20Regarding%20Certain%20Metrics) News Corporation clarifies that certain metrics, like subscriptions and unique users, are based on internal or third-party data, with specific definitions for 'Unique Users' and 'Total Digital Revenues' - Certain metrics like subscriptions and unique users are calculated using third-party or internal company data that have not been independently verified, and methodologies may differ from competitors[88](index=88&type=chunk) - Unique users are counted only the first time an individual accesses a product's website or mobile app using a browser/device during a calendar month[89](index=89&type=chunk) - Total digital revenues are defined as the sum of consolidated Digital Real Estate Services segment revenues, digital advertising revenues, digital circulation and subscription revenues, revenues from digital book sales and other miscellaneous digital revenue streams[90](index=90&type=chunk) [ITEM 1A. Risk Factors](index=19&type=section&id=ITEM%201A.%20Risk%20Factors) News Corporation faces significant risks from intense competition, macroeconomic conditions, AI, supply chain dependencies, reputational damage, and complex legal and regulatory landscapes, impacting financial performance - The Company operates in a highly competitive business environment, intensified by evolving technologies, including generative AI, which can reduce traffic and subscriber demand for digital products[92](index=92&type=chunk) - Macroeconomic and market conditions, such as economic weakness, inflation, elevated interest rates, and geopolitical tensions, may adversely affect the Company's business, particularly advertising expenditures and real estate markets[98](index=98&type=chunk)[102](index=102&type=chunk) - The Company's businesses depend on a single or limited number of suppliers for certain products, services, data, and information, making it vulnerable to supply disruptions or price increases[106](index=106&type=chunk)[108](index=108&type=chunk) - Developments in AI, including the Company's own use of AI, may expose it to risks such as producing deficient or infringing content, competitive disadvantages, and increased legal and regulatory scrutiny[111](index=111&type=chunk) - The Company is exposed to fluctuations in foreign currency exchange rates, primarily the Australian dollar and British pound sterling, which can impact reported earnings and financial statements[131](index=131&type=chunk) [Risks Relating to the Company's Businesses and Operations](index=19&type=section&id=Risks%20Relating%20to%20the%20Company%27s%20Businesses%20and%20Operations) Operational risks include intense competition from AI, adverse macroeconomic conditions impacting advertising and real estate, reliance on limited suppliers, potential reputational damage, and increased printing costs - The Company faces significant competition, including from other providers of information, news, real estate-related and entertainment products and services, intensified by changes in technologies, including developments in generative AI[92](index=92&type=chunk) - Macroeconomic and market conditions, such as economic weakness, uncertainty or volatility, geopolitical tensions, and inflationary pressures, have adversely affected, and may continue to affect, the U.S. and global economies and the Company's business[98](index=98&type=chunk) - A decline in customer advertising expenditures, driven by shifting consumer preferences, increased audience fragmentation, and the dominance of large digital platforms, could significantly reduce the Company's revenues and operating results[100](index=100&type=chunk)[101](index=101&type=chunk) - The Company's businesses depend on a single or limited number of third-party suppliers for certain products, services, data, and information, creating vulnerability to supply reductions, interruptions, or significant price increases[106](index=106&type=chunk)[108](index=108&type=chunk) - Any significant increase in the cost to print and distribute the Company's books and newspapers or disruption in its supply chain could adversely affect its business, results of operations, and financial condition[110](index=110&type=chunk) [Risks Related to Intellectual Property](index=27&type=section&id=Risks%20Related%20to%20Intellectual%20Property) News Corporation's success depends on protecting its intellectual property, which faces significant threats from unauthorized use by generative AI and an evolving legal landscape, potentially impacting revenue and costs - The Company's success depends on its ability to maintain, enforce and monetize the rights in its content and other intellectual property, and unauthorized use, especially by generative AI, affects their value[117](index=117&type=chunk) - The application of existing laws and regulations to new technologies, including generative AI, continues to be unsettled and is changing rapidly, making it difficult to adequately protect and monetize intellectual property[119](index=119&type=chunk) - Third parties may challenge the validity or scope of the Company's intellectual property, and infringement claims could result in substantial costs, diversion of resources, or the loss of IP rights[120](index=120&type=chunk) [Risks Related to Information Technology, Cybersecurity and Data Protection](index=29&type=section&id=Risks%20Related%20to%20Information%20Technology%2C%20Cybersecurity%20and%20Data%20Protection) News Corporation faces substantial risks from cyberattacks, system breaches, and data misuse, exacerbated by AI, potentially causing service disruptions, data loss, reputational damage, and regulatory non-compliance issues - A breach, failure, misuse, or other incident involving the Company's or its third-party providers' network and information systems could disrupt services, impact data confidentiality/integrity/availability, and result in increased costs, revenue loss, or reputational damage[121](index=121&type=chunk)[125](index=125&type=chunk) - Cyberattacks are increasing in number and sophistication, particularly with the emergence of AI capabilities, heightening cybersecurity risks for the Company[124](index=124&type=chunk) - Failure to comply with complex and evolving laws and regulations regarding privacy, data use, and data protection (e.g., GDPR, UK GDPR, U.S. state laws) could lead to enforcement actions, fines, notification/remediation costs, loss of customers, and reputational damage[126](index=126&type=chunk)[127](index=127&type=chunk) [Risks Related to Financial Results and Position](index=32&type=section&id=Risks%20Related%20to%20Financial%20Results%20and%20Position) Financial risks include substantial indebtedness, foreign currency fluctuations, potential asset impairment, restructuring charges, and significant tax liabilities from complex and evolving tax laws - As of June 30, 2025, News Corp had **$2.0 billion of total outstanding indebtedness**, which could limit its ability to obtain additional financing, satisfy obligations, and respond to changing market conditions[129](index=129&type=chunk) - The Company is exposed to fluctuations in foreign currency exchange rates, primarily the Australian dollar and the British pound sterling, which can have a currency translation impact on earnings[131](index=131&type=chunk) - The Company may recognize impairment charges for goodwill, intangible assets, investments, and other long-lived assets, as well as restructuring charges, which negatively impact results of operations[132](index=132&type=chunk) - The Company could be subject to significant additional tax liabilities due to complex tax laws, changes in regulations, and the outcome of tax audits, adversely affecting operating results and financial condition[133](index=133&type=chunk)[134](index=134&type=chunk) [Risks Related to Legal and Regulatory Matters](index=33&type=section&id=Risks%20Related%20to%20Legal%20and%20Regulatory%20Matters) Legal and regulatory risks include evolving laws on data privacy, AI, and ESG, potentially leading to non-compliance costs, penalties, reputational damage, and adverse litigation outcomes - The Company's activities are subject to regulation in numerous jurisdictions, and new laws or changes in existing ones, particularly concerning data privacy, AI, and ESG matters, can increase compliance risk and negatively impact its interests[135](index=135&type=chunk)[136](index=136&type=chunk) - Adverse results from litigation or other proceedings, including antitrust, tax, data privacy, intellectual property, and defamation matters, could lead to reputational harm, significant monetary damages, and changes in business practices[137](index=137&type=chunk) [Risks Related to the Company's Common Stock](index=34&type=section&id=Risks%20Related%20to%20the%20Company%27s%20Common%20Stock) Common stock market price fluctuations, potential conflicts of interest with Fox Corporation, and anti-takeover provisions, including concentrated ownership by the Murdoch Family Trust, pose risks - The market price of the Company's common stock may fluctuate significantly due to factors such as quarterly earnings, business strategy success, economic conditions, and investor perception[138](index=138&type=chunk) - Certain directors and significant stockholders, including Lachlan K. Murdoch, also hold equity or serve as officers/directors of Fox Corporation, which may create actual or potential conflicts of interest and divert corporate opportunities[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk) - Anti-takeover provisions in the Company's Restated Certificate of Incorporation and Amended and Restated By-laws, along with the Murdoch Family Trust's approximately **40.6% ownership of Class B Common Stock**, may discourage takeovers and affect voting results[142](index=142&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk) [ITEM 1B. Unresolved Staff Comments](index=36&type=section&id=ITEM%201B.%20Unresolved%20Staff%20Comments) News Corporation reports no unresolved staff comments from the SEC - There are no unresolved staff comments[147](index=147&type=chunk) [ITEM 1C. Cybersecurity](index=36&type=section&id=ITEM%201C.%20Cybersecurity) News Corporation maintains a comprehensive NIST-informed cybersecurity program, overseen by the Audit Committee, to manage threats, though acknowledging ongoing risks despite no material incidents to date - News Corporation has developed and implemented a cybersecurity program, informed by the NIST Cybersecurity Framework, to manage threats to its global media and information services[148](index=148&type=chunk) - The program includes a dedicated global cybersecurity organization led by the CISO, employee training, technical measures (e.g., multi-factor authentication, encryption), incident response planning, and periodic testing[148](index=148&type=chunk)[149](index=149&type=chunk) - The Board of Directors, through the Audit Committee, oversees cybersecurity risks, receiving quarterly reports from the CTO and CISO[153](index=153&type=chunk) - To date, the Company is not aware of any cybersecurity incidents that have materially affected or are reasonably likely to materially affect the Company[152](index=152&type=chunk) [Risk Management and Strategy](index=36&type=section&id=Risk%20Management%20and%20Strategy) News Corporation's cybersecurity strategy employs a NIST-guided defense-in-depth approach, including policies, training, technical controls, and third-party risk management, acknowledging increasing cyber threats - The Company's cybersecurity program is informed by the NIST Cybersecurity Framework and leverages a defense-in-depth approach to managing cybersecurity risk[148](index=148&type=chunk) - The program includes annual cybersecurity and privacy awareness trainings, quarterly phishing exercises, and various technical measures such as identity and access management, multi-factor authentication, and encryption[148](index=148&type=chunk) - The Company conducts periodic testing and assessments of its cybersecurity program through internal personnel and third-party firms, including penetration testing and security audits[149](index=149&type=chunk) - Processes for identifying, assessing, and managing cybersecurity risk are integrated into the Company's overall risk management process, with semi-annual reports to the Audit Committee and Board of Directors[150](index=150&type=chunk) [Governance](index=37&type=section&id=Governance) The Board, through its Audit Committee, oversees cybersecurity risks, receiving quarterly reports from the CTO and CISO, who lead day-to-day risk management and policy implementation - News Corp's Board of Directors oversees the Company's processes for identifying, assessing and managing significant risks, with the Audit Committee having primary responsibility for cybersecurity[153](index=153&type=chunk) - The Audit Committee generally receives reports at least quarterly from the CTO and CISO on the Company's cybersecurity program[153](index=153&type=chunk) - Management, led by the CISO and supported by the Global Cybersecurity Steering Committee, is responsible for day-to-day cybersecurity risk management, policy development, and compliance[154](index=154&type=chunk) - The CTO assumed his position in June 2025 after serving in various leadership and technology roles at the Company's subsidiary News Corp Australia since 2012, including as CTO from 2020. The CISO has been in his position since December 2024 after serving in various leadership and information security roles at the Company since 2021[154](index=154&type=chunk) [ITEM 2. Properties](index=38&type=section&id=ITEM%202.%20Properties) News Corporation owns and leases various real properties globally, including offices and printing facilities, all maintained in good condition and adequate for business operations - The Company owns and leases various real properties in the U.S., Europe, Australia and Asia that are utilized in the conduct of its businesses[155](index=155&type=chunk) - Principal U.S. properties include leased headquarters in New York, HarperCollins offices, an owned campus in South Brunswick, NJ, and Move's leased offices in Austin, TX[157](index=157&type=chunk) - Principal European properties include leased London headquarters for News UK, Dow Jones, and HarperCollins, U.K. newspaper production/printing facilities (owned and leased), and HarperCollins warehouse/offices in Glasgow, Scotland[157](index=157&type=chunk) - Principal Australia and Asia properties include owned and leased Australian newspaper production/printing facilities (Sydney, Melbourne, Adelaide), REA Group's leased corporate offices in Melbourne, and Dow Jones's leased office in Hong Kong[157](index=157&type=chunk) [ITEM 3. LEGAL PROCEEDINGS](index=38&type=section&id=ITEM%203.%20Legal%20Proceedings) News Corporation refers to Note 16—Commitments and Contingencies for details on legal proceedings - See Note 16—Commitments and Contingencies in the accompanying Consolidated Financial Statements for information on legal proceedings[156](index=156&type=chunk) [ITEM 4. Mine Safety Disclosures](index=39&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are not applicable to News Corporation's operations - Mine Safety Disclosures are not applicable[158](index=158&type=chunk) [PART II](index=40&type=section&id=PART%20II) This section details News Corporation's market for common equity, financial performance, market risks, and financial statements [ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=40&type=section&id=ITEM%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) News Corporation's Class A and B Common Stock trade on Nasdaq and ASX, with active dividend payments and ongoing stock repurchase programs, including a new $1 billion authorization - News Corporation's Class A and Class B Common Stock are listed and traded on The Nasdaq Global Select Market under symbols 'NWSA' and 'NWS', respectively. CHESS Depositary Interests (CDIs) are listed on the Australian Securities Exchange (ASX) under 'NWSLV' and 'NWS'[160](index=160&type=chunk) - As of August 1, 2025, **376,442,848 shares of Class A Common Stock** and **188,528,838 shares of Class B Common Stock** were outstanding[8](index=8&type=chunk) Cash Dividends Paid Per Share (Fiscal Years Ended June 30) | Fiscal Year | Cash Dividends Paid Per Share | | :---------- | :---------------------------- | | 2025 | $0.20 | | 2024 | $0.20 | | 2023 | $0.20 | Stock Repurchases (Fiscal Years Ended June 30) | Class | 2025 Shares (millions) | 2025 Amount (millions) | 2024 Shares (millions) | 2024 Amount (millions) | 2023 Shares (millions) | 2023 Amount (millions) | | :----------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Class A Common Stock | 3.5 | $97 | 3.4 | $79 | 9.5 | $159 | | Class B Common Stock | 1.8 | $53 | 1.6 | $38 | 4.7 | $81 | | Total | 5.3 | $150 | 5.0 | $117 | 14.2 | $240 | - As of June 30, 2025, approximately **$310 million remained authorized** under the 2021 Repurchase Program. A new **$1 billion stock repurchase program** was authorized on July 15, 2025[162](index=162&type=chunk)[164](index=164&type=chunk)[496](index=496&type=chunk)[499](index=499&type=chunk) [ITEM 6. [Reserved]](index=41&type=section&id=ITEM%206.%20%5BReserved%5D) This item is reserved and not applicable to News Corporation's current filing - This item is reserved and not applicable[166](index=166&type=chunk) [ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=ITEM%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) News Corporation's fiscal 2025 revenues increased 2% to $8,452 million, with net income attributable to stockholders surging 344% to $1,180 million, largely due to the Foxtel sale Consolidated Operating Results (Fiscal Years Ended June 30) | Metric | 2025 (in millions) | 2024 (in millions) | Change (in millions) | % Change | | :-------------------------------------------------- | :------------------- | :------------------- | :------------------- | :------- | | Total Revenues | $8,452 | $8,252 | $200 | 2% | | Operating expenses | $(3,736) | $(3,814) | $78 | 2% | | Selling, general and administrative | $(3,301) | $(3,197) | $(104) | (3)% | | Depreciation and amortization | $(459) | $(440) | $(19) | (4)% | | Impairment and restructuring charges | $(132) | $(133) | $1 | 1% | | Equity losses of affiliates | $(15) | $(6) | $(9) | (150)% | | Interest income (expense), net | $3 | $(18) | $21 | ** | | Other, net | $111 | $(59) | $170 | ** | | Income before income tax expense from continuing operations | $923 | $585 | $338 | 58% | | Income tax expense from continuing operations | $(275) | $(206) | $(69) | (33)% | | Net income from continuing operations | $648 | $379 | $269 | 71% | | Net income (loss) from discontinued operations, net of tax | $692 | $(25) | $717 | ** | | Net income | $1,340 | $354 | $986 | 279% | | Net income attributable to News Corporation stockholders | $1,180 | $266 | $914 | 344% | - Revenues increased by **$200 million (2%)** in fiscal 2025, driven by Digital Real Estate Services, Dow Jones, and Book Publishing, partially offset by News Media declines. Foreign currency fluctuations had a positive impact of **$8 million**[195](index=195&type=chunk) - Net income attributable to News Corporation stockholders increased by **$914 million (344%) to $1,180 million**, primarily due to a **$716 million pre-tax gain** on the sale of Foxtel[194](index=194&type=chunk)[415](index=415&type=chunk) Total Segment EBITDA (Fiscal Years Ended June 30) | Metric | 2025 (in millions) | 2024 (in millions) | | :----------------- | :------------------- | :------------------- | | Total Segment EBITDA | $1,415 | $1,241 | [INTRODUCTION](index=42&type=section&id=INTRODUCTION) This section provides management's discussion and analysis of News Corporation's financial condition and results of operations for fiscal years 2025 and 2024, including business overview, segment results, and critical accounting policies - This discussion and analysis covers News Corporation's financial condition and results of operations for the fiscal years ended June 30, 2025 and 2024, omitting fiscal 2023[167](index=167&type=chunk)[168](index=168&type=chunk) - It includes an overview of businesses, results of operations (consolidated and segment-based), liquidity and capital resources, and critical accounting policies and estimates[171](index=171&type=chunk)[172](index=172&type=chunk) - The discussion contains forward-looking statements and should be read in conjunction with the Consolidated Financial Statements and 'Item 1A. Risk Factors'[167](index=167&type=chunk) [OVERVIEW OF THE COMPANY'S BUSINESSES](index=43&type=section&id=OVERVIEW%20OF%20THE%20COMPANY%27S%20BUSINESSES) News Corporation operates five segments: Dow Jones, Digital Real Estate Services, Book Publishing, News Media, and Other, each with distinct revenue drivers, competitive landscapes, and macroeconomic sensitivities - The Company manages and reports its businesses in five segments: Dow Jones, Digital Real Estate Services, Book Publishing, News Media, and Other[173](index=173&type=chunk)[174](index=174&type=chunk) - Dow Jones revenue is diversified across B2C and B2B subscriptions, circulation, advertising, and licensing, facing increasing competition from AI-powered platforms[175](index=175&type=chunk)[176](index=176&type=chunk)[180](index=180&type=chunk) - Digital Real Estate Services revenue is from property advertising, lead generation, and financial services, highly sensitive to real estate market conditions and macroeconomic factors[181](index=181&type=chunk) - Book Publishing revenue is from print and digital book sales and licensing, affected by release timing, seasonal demand, and technological developments[183](index=183&type=chunk) - News Media revenue is from circulation, subscriptions, advertising, and licensing, facing intense competition from digital platforms and AI, with advertising revenues subject to seasonality[185](index=185&type=chunk)[187](index=187&type=chunk)[188](index=188&type=chunk) [Other Business Developments](index=47&type=section&id=Other%20Business%20Developments) News Corporation completed the sale of Foxtel in April 2025, resulting in a $716 million pre-tax gain and reclassification as discontinued operations, while monitoring macroeconomic trends - The Company completed the sale of the Foxtel Group to DAZN Group Limited in April 2025[190](index=190&type=chunk) - The transaction resulted in a pre-tax gain of **$716 million** and a minority equity interest of approximately **6% in DAZN**, recorded at **$648 million**[415](index=415&type=chunk) - Foxtel's assets, liabilities, results of operations, and cash flows have been classified as discontinued operations for all periods presented, and its segment results were aggregated into News Media[191](index=191&type=chunk)[416](index=416&type=chunk) - The Company is closely monitoring recent macroeconomic trends, including changes in trade policy and inflationary pressures, which could negatively impact customer and consumer sentiment and spending[192](index=192&type=chunk) [Results of Operations—Fiscal 2025 versus Fiscal 2024](index=48&type=section&id=Results%20of%20Operations%

Group 1 - News Corp. reported revenue of $2.11 billion for the quarter ended June 2025, a decrease of 18.2% year-over-year, with EPS at $0.19 compared to $0.17 in the same quarter last year [1] - The reported revenue slightly exceeded the Zacks Consensus Estimate of $2.1 billion, resulting in a surprise of +0.26%, while the EPS met the consensus estimate [1] - Over the past month, News Corp. shares returned +0.5%, underperforming the Zacks S&P 500 composite's +1% change, and the stock currently holds a Zacks Rank 3 (Hold) [3] Group 2 - Revenue breakdown by product includes: Dow Jones at $604 million (+6.7% YoY), Book Publishing at $494 million (-3.5% YoY), Digital Real Estate Services at $466 million (+4% YoY), and News Media at $545 million (0% change YoY) [4] - EBITDA figures show Dow Jones at $151 million, News Media at $28 million, Other at -$59 million, Book Publishing at $50 million, and Digital Real Estate Services at $152 million, with most figures exceeding analyst estimates [4]

Core Insights - News Corp reported a 28% increase in quarterly profits and a 1% rise in revenue, surpassing Wall Street expectations [1] - The company's net income for the fourth quarter was $86 million, up from $67 million year-over-year, while revenues reached $2.11 billion, compared to $2.09 billion in the prior year [1] - For the fiscal year 2025, profits surged 71% to $648 million from $379 million, with annual revenues increasing 2% to $8.45 billion [4] Revenue Drivers - The earnings growth was primarily driven by higher circulation and subscription revenues from the Dow Jones division, which includes notable publications like The Wall Street Journal and Barron's [2][4] Capital Return Strategy - News Corp's CEO announced a new $1 billion stock repurchase program, in addition to approximately $300 million remaining from a previous program [5] - The company plans to accelerate share repurchases following the release of these strong financial results, reflecting confidence in its financial strength [6] Expansion Plans - The company is set to expand its operations with the launch of The California Post in early 2026, targeting the West Coast market [8] Industry Commentary - The CEO emphasized the importance of protecting intellectual property rights in the face of challenges posed by artificial intelligence, highlighting the need to maintain America's competitive edge through creativity and innovation [9][10]

Core Viewpoint - The ongoing conflict between News Corp and Donald Trump highlights the tension surrounding intellectual property rights in the age of AI, with CEO Robert Thomson criticizing Trump's support for AI technology while emphasizing the need to protect creators' rights [1][2][5]. Group 1: Company Position on AI and Intellectual Property - News Corp is actively pursuing legal action against AI firms, claiming that their technologies infringe on the company's intellectual property by utilizing content from its publications without permission [4][9]. - Thomson articulated the importance of safeguarding intellectual property, stating that the value of creativity and ingenuity must be preserved to maintain a competitive edge against countries like China [5][8]. - The company is adopting a "woo-and-sue" strategy towards AI firms, indicating a dual approach of collaboration and litigation to protect its content [9]. Group 2: Financial Implications and Industry Context - Thomson noted that companies are investing tens of billions in AI infrastructure, yet they must also allocate significant resources to secure content that is essential for their success [8]. - The potential for AI to cannibalize existing works, such as Trump's books, raises concerns about future sales and the overall health of the content ecosystem [6][7]. - The ongoing legal battles and the need for a healthy content ecosystem are critical for the sustainability of media companies like News Corp in the evolving digital landscape [9].

Core Viewpoint - News Corp's CEO Robert Thomson highlighted the challenges posed by AI to intellectual property, referencing Donald Trump's situation in the context of the company's fiscal fourth quarter earnings report [1][3][5]. Group 1: Company Earnings and AI Impact - Thomson cleverly referenced Trump in the earnings report without directly mentioning the lawsuit or Epstein, indicating a potential thaw in relations between Murdoch and Trump [2]. - The earnings release emphasized the irony of Trump, as an intellectual property holder, being affected by AI, despite his support for tech firms in AI development [3]. - Thomson stated that companies are investing tens of billions in data centers, chips, and energy generation, and they must also invest significantly in content to ensure a healthy content ecosystem [8]. Group 2: Intellectual Property and Legal Actions - News Corp has been actively pursuing legal options to protect its intellectual property, including a lawsuit against AI firm Perplexity for allegedly using its content without permission [4][9]. - Thomson stressed the importance of protecting intellectual property rights, arguing that undermining these rights would damage America's creative advantage [5]. - The company is adopting a "woo-and-sue" strategy towards AI firms, indicating a dual approach of collaboration and legal action to safeguard its content [9].