• News Corp (NasdaqGS:NWSA) has secured material AI content licensing deals with Anthropic, with anticipated payments tied to the use of its content.
• The company is also expanding AI partnerships with OpenAI and Bloomberg, focused on licensing and distribution of its news and information.
• These arrangements highlight a new approach to monetizing News Corp’s content through agreements with major AI firms.

News Corp, trading at $24.21 under ticker NasdaqGS:NWSA, is drawing attention for how it is using its content in AI rather than for quarterly earnings alone. The stock has seen a 20.7% return over 3 years and 9.9% over 5 years, while the past year shows a 14.4% decline. For investors, this combination of longer term gains and more recent weakness provides context for how these AI deals might fit into the broader story.

For you as a shareholder or potential investor, the key question is how durable and scalable these AI content arrangements could become. While specific future payments are not detailed here, the fact that Anthropic, OpenAI and Bloomberg are engaging with News Corp on content reflects a business model that differs from traditional advertising and subscriptions.

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Quick Assessment

• ✅ Price vs Analyst Target: At $24.21 versus a $35.73 analyst target, the price sits about 47% below consensus.
• ✅ Simply Wall St Valuation: Shares are flagged as undervalued, trading 10.4% below the platform's estimated fair value.
• ❌ Recent Momentum: The 30 day return of roughly 8.5% decline shows recent weakness despite the AI news.

Check out Simply Wall St's in depth valuation analysis for News.

Key Considerations

• 📊 The Anthropic, OpenAI and Bloomberg deals point to a growing role for AI licensing in how News Corp monetizes its content library.
• 📊 Watch how AI related revenue is disclosed over time, alongside the P/E of 28.4 versus the media industry average of 14.8.
• ⚠️ A 30 day price decline and a higher P/E than peers mean you may want to assess how much of the AI story is already reflected in the valuation.

Dig Deeper

For the full picture including more risks and rewards, check out the complete News analysis.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.