News Corp Media Group Attracts Investors Amid Political Demand and AI Licensing Deals
News Corp (NWSA), owner of The Wall Street Journal and Barron's, is drawing investor attention thanks to growing demand for premium journalism amid political scandals and signed deals for content licensing to train AI, backed by strong financial results.
News Corp: How Traditional Media Became the "Fuel Supplier" for the AI Era
[The Gist]: What's Really Happening
While the semiconductor market is in turmoil and investors are fleeing AI chips, one segment is paradoxically benefiting from the artificial intelligence boom — content producers. News Corp (NWSA), owner of The Wall Street Journal, Barron's, and MarketWatch, has transformed into an "AI inputs company," and the market is taking notice. The stock trades at $25.41, up 1.52% in the last session, with a consensus analyst target of $35.17, implying nearly 40% upside potential.
The key narrative driving the stock is content licensing deals for training large language models. News Corp signed a multi-year agreement with OpenAI worth over $250 million over five years, and in March 2026 added a deal with Meta for $50 million annually. This isn't just "easy money" for an aging media giant. It's a fundamental revaluation of the asset: high-quality journalistic content is becoming strategic raw material for the AI economy, on par with semiconductors and energy.
But the market is missing the bigger picture. News Corp isn't just selling access to archives. Unlike the OpenAI deal, which was purely licensing, the agreement with Meta includes exchanging insights as technology evolves. The company is positioning itself not as a passive data supplier but as an active participant in shaping the AI ecosystem, which could pave the way for higher multiples than traditional media.
Timeline and Context
News Corp's strategic pivot began long before the generative AI boom. The company systematically transformed from a classic publishing house into a digital platform with high-margin subscription services. Third-quarter 2026 financial results (ending March 31) confirm this trend: revenue grew 9% to $2.2 billion, and Total Segment EBITDA rose 18% to $343 million.
| Metric | Q3 2026 Value | Year-over-Year Change |
|---|---|---|
| Revenue | $2.19 billion | +8.8% |
| Adjusted EPS | $0.21 | +23.5% (beat estimates by 31%) |
| Total Segment EBITDA | $343 million | +18% |
| Market Capitalization | $13.8 billion | — |
| Consensus Analyst Target | $35.17 | +44.7% from current price |
The key growth driver is the Dow Jones segment, which posted its 13th consecutive quarter of EBITDA growth. Division revenue rose 8% to $619 million, with digital revenues accounting for 84% of total segment revenue. Particularly impressive is the Risk & Compliance segment, up 19% to $100 million, and Dow Jones Energy, up 12%. The company aims to achieve $1 billion in annual EBITDA for the Dow Jones segment within five years.
Timeline of key deals: 2024 — agreement with OpenAI (over $250 million over 5 years), March 2026 — deal with Meta ($50 million annually), May 2026 — CEO Robert Thomson states ongoing negotiations with other AI companies. Additionally, the company expects to receive its share from the $1.5 billion Anthropic settlement, which is set to begin payouts in the second half of 2026.
Who Wins and Who Loses
The direct beneficiary is News Corp shareholders. The company is actively buying back shares: $193 million in the third quarter and $459 million over nine months. Management considers the stock "significantly undervalued" relative to net asset value. Analysts are unanimous: nine analysts covering NWSA rate it "Strong Buy," with an average price target of $36.57.
However, there are losers too. Traditional media that failed to monetize their content through AI licensing are left behind. The market now clearly divides the media sector into two categories: "AI fuel suppliers" (News Corp, Associated Press, Financial Times) and "consumers being replaced by AI" (many regional newspapers). This dichotomy will only intensify.
The most unexpected beneficiary is subscribers to The Wall Street Journal and Barron's. They not only get quality content but also indirectly participate in the AI economy through rising subscription value. In the third quarter, total subscriptions for Dow Jones consumer products exceeded 6.5 million, up 7% year over year, while digital subscriptions to The Wall Street Journal grew 11% to 4.3 million. This means News Corp content is becoming even more valuable in an era of information noise.
What the Media Isn't Saying
First insight: The deals with OpenAI and Meta are just the tip of the iceberg. CEO Robert Thomson stated outright on the investor call that News Corp is "in negotiations regarding several further deals with companies that recognize the value of our provenance." He also warned that the company will "ruthlessly pursue" unscrupulous digital firms that illegally scrape its content. So the strategy isn't limited to licensing — it also involves aggressive intellectual property protection through the courts.
Second insight: News Corp is turning into an "AI rent." The company generates revenue not only from direct licensing but also from indirect effects. The $1.5 billion Anthropic settlement sets a precedent for pricing the use of publisher content for AI training. News Corp, as one of the plaintiffs in this case, will receive its share, and this case creates a legal foundation for future lawsuits against violators, potentially becoming a permanent income stream.
Third, and most important insight: News Corp has a structural advantage over competitors — a deep archive and global presence. As Thomson noted, "few companies on the planet have the depth of archive and relevance of current content that we can offer across borders and segments." In a world where AI models require constant data updates to stay relevant, owning unique historical and current content becomes a barrier to entry. This isn't just a media company — it's a data bank that cannot be replicated.
Forecast: Next 30 Days and 90 Days
Over the next 30 days, News Corp shares may continue to consolidate in the $24-26 range. The market is in correction, the tech sector is declining, and the defensive status of media stocks doesn't guarantee immediate growth. However, potential news about new AI deals or progress in legal battles with Perplexity could act as a catalyst for a breakout above $26.5.
On a 90-day horizon, the main focus is on the quarterly report (tentatively August 4, 2026). If the company confirms its forecast for "another record year of profitability" and provides details on new AI deals, shares could approach the $35 target. The risk is a slowdown in the News Media segment, where EBITDA fell 55% year over year due to lower contributions from News UK and costs from launching California Post, as well as potential negative impacts from macroeconomic slowdown on advertising revenue.
Editorial Forecast
Asset: News Corp shares (NWSA). Direction: Moderate growth over the next 24-72 hours, but with high volatility amid market correction. Key resistance level — $26.5 (upper end of daily range), support — $25. Confidence level: Medium, as positive fundamental drivers (AI deals, strong financial results) counteract negative market conditions in the tech sector. Main risk: A broad market correction could drag down even defensive assets, and the lack of concrete news about new AI deals could lead to investor disappointment.
The editorial opinion is for informational purposes only and does not constitute investment advice.
— Editorial Team
