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Fox Entertainment Group: The Casino Royale Of Assets For Price Growth

Jul. 05, 2017 12:08 PM ETFox Corporation (FOX)DIS, SKYAY, TWX5 Comments
David Belle profile picture
David Belle


  • A huge Sky merger could be the catalyst to the price growth.
  • Its PEG is undervalued in my opinion.
  • The film production branch has some major blockbusters being released over the next 3 years which will surely add to the firm's bottom line considerably.
  • There is a stumbling block to the merger and that is the UK government.

The Fox Entertainment Group (NASDAQ:FOX) is one of the largest media businesses in the world; with cable channels now numbering over 50, global coverage of sports, they've been the producers of massively successful movies and are part of one of the world’s largest news media businesses, Murdoch’s News Corp. I've always thought it reminded me of the Carver Media Group Network from Tomorrow Never Dies…


They're actually pretty similar - massive global coverage, a slightly megalomaniac owner (the comparisons between Carver (see above) and Murdoch can be made) and a desire to control all media; this is what Murdoch to an extent has already done, but is looking to do further with the potential merger of Sky and Fox. This is the main basis as to why I believe that Fox is trading at value and I shall expand on this with further fundamentals and examine a technical basis for having this company in your portfolio.

But firstly, let me get the small stumbling block the stock might face, if we are looking at upside moves, out of the way...

The UK Government: Murdoch’s 007


The Sky/Fox merger is currently going through some competition issues, with the UK MP Karen Bradley referring the £11.75bn merger to the competition authorities. It is subject to a 24-week investigation whereby investigations will be undertaken to see whether media plurality will be affected, and whether Rupert Murdoch himself is a ‘fit and proper owner’. However, Europe has already approved the merger. This means that the UK does have the final say in accordance with Article 21 of the EU Merger Regulation.

What makes me believe that the UK is going to approve the merger and thus it would be a good time to buy now are two things. Firstly, is the UK going to

This article was written by

David Belle profile picture
Macrodesiac - Level up your market IQTechnicals for show, macro for dough.Trade in the tails and always have a view.Trade the value, not the price.

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Comments (4)

MontrealValue profile picture
You mention Fox being part of Murdochs News Corp in the opening paragraph.. I hope you realize that these are two separate entities.
David Belle profile picture
They are indeed, however when referring to the Sky merger it is important due to the media plurality. That was the link - apologies if I didn't make it clear enough.
Charlie's Munger profile picture
Not sure what future of their cable business is...sons cut from different cloth
David Belle profile picture
In the US or UK?
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