News Corp (NYSE: NWS) has filed a document with the SEC that says it will buy in as may as $5 billion of its shares. The market cap of the company has dropped $7 billion over the last four days to to a phone hacking and bribery scandal which originated at the new shutter News of the World.

On July 12, 2011, News Corporation (the “Company”) issued a press release announcing that its Board of Directors has approved a stock repurchase program totaling $5 billion. The Company is targeting to acquire the $5 billion of Class A common stock and Class B common stock from time to time over the next 12 months.

The rapid rise in the share price is an indication that Wall St. believes shares are cheap at the current level.

Douglas A. McIntyre