Meta Signs AI Content Licensing Deal with News Corp

Written by Emily J. Thompson, Senior Investment Analyst

Source: Benzinga

Updated: 8 hours ago

0mins

META+0.23%

NWS-0.72%

NWSA-0.67%

Should l Buy META?

Source: Benzinga

Deal Value: Meta's artificial intelligence content licensing agreement with News Corp could pay up to $50 million annually, highlighting the fierce competition among Big Tech to secure journalism that supports chatbots and other AI tools.
Agreement Duration: The deal spans at least three years, granting Meta access to News Corp content from the US and UK, enabling the company to provide fresh reporting for its AI product users and train systems on archival material, thereby enhancing content richness and accuracy.
Competitive Landscape: News Corp's separate AI deal with OpenAI, valued at over $250 million in 2024, indicates escalating competition between Meta and OpenAI for quality news resources, as both aim to enhance their AI offerings through premium content acquisition.
Stock Price Reaction: Following the announcement, Meta's shares rose 0.23% during regular trading but fell 0.14% in after-hours trading, reflecting market caution regarding the deal, while News Corp's Class A and B shares exhibited mixed performance in after-hours trading, indicating varying investor expectations for future earnings.

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Analyst Views on META

Wall Street analysts forecast META stock price to rise

44 Analyst Rating

37 Buy

6 Hold

1 Sell

Strong Buy

Current: 653.560

Low

655.15

Averages

824.71

High

1117

Current: 653.560

Low

655.15

Averages

824.71

High

1117

Wells Fargo

Ken Gawrelski

Overweight

maintain

$849 -> $856

2026-02-23

Reason

Wells Fargo

Ken Gawrelski

Price Target

$849 -> $856

AI Analysis

2026-02-23

maintain

Overweight

Reason

Wells Fargo analyst Ken Gawrelski raised the firm's price target on Meta Platforms to $856 from $849 and keeps an Overweight rating on the shares. The firm argues that compute capacity is emerging as the critical determinant of success, with AI-driven demand poised to materially outstrip supply in the near to medium term. Wells sees hyperscaler capacity doubling to 98 gigawatts by 2027, supported by annual capital expenditures rising to roughly $860B, and expects cloud growth to run meaningfully ahead of current consensus.

Freedom Capital

Buy

maintain

$800 -> $825

2026-02-03

Reason

Freedom Capital

Price Target

$800 -> $825

2026-02-03

maintain

Buy

Reason

Freedom Capital raised the firm's price target on Meta Platforms to $825 from $800 and keeps a Buy rating on the shares. Meta delivered a "strong" Q4, beating consensus across all key metrics, as record holiday-season demand and AI-driven improvements in ad efficiency accelerated top-line growth, the analyst tells investors. Robust ad revenue growth along with explicit profit growth commitments reassured investors that the capex ramp is "disciplined and accretive," the analyst added.

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About META

Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

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