Time Warner Cable Agrees To Carry Future Fox Business Channel

Reports surfaced yesterday that Time Warner Cable has agreed to carry the future Fox Business Channel. While no details were disclosed, a spokesperson for Fox owner News Corp. did confirm that an agreement had been reached between the two companies. News Corp. Chairman and CEO Rupert Murdoch had initially wanted a Fox Business Channel launched as early as 2005 but deals with cable companies were not forthcoming. At this point, News Corp. has deals in place with the U.S.'s largest cable company, Comcast (24 million subscribers) as well as with DIRECTV, which is now controlled by Liberty Media. Time Warner Cable has 13 million subscribers and represents a crucial signing according to UBS analyst Aryeh Bourkoff because of its "presence in New York, which is obviously a critical market for a financial news service." According to Business Week, the website of the Financial Times is reporting the deal will bring News Corp. 10-15 cents in revenue per Time Warner subscriber. Such details were not disclosed by the involved parties. The new channel would challenge CNBC, which currently has the day time business news slot all to itself.

• Sources: Bloomberg, Business Week, Red Herring
• Related commentary: Fox Business Channel Ready For Action in 2007, Views On Liberty's DTV Swap, Murdoch Sells DirecTV : Does He Know Something Liberty Media Doesn't?. Conference call transcripts: News Corp F1Q07 (Qtr End 9/30/06)
• Potentially impacted stocks and ETFs: News Corp. (NWS), Time Warner (TWX), Comcast (CMCSA), Liberty Media (LINTA), DIRECTV Group (DTV). Competitors: General Electric (GE), EchoStar Communications (DISH), Cablevision Systems Corporation (CVC). ETFs: PowerShares Dynamic Media Portfolio (PBS)

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