Disney's (NYSE:DIS) off 1.5% following a morning downgrade to Sell from Pivotal Research, and amid news that the company is looking to add cash to its Fox media-asset bid to ward off an all-cash offer from Comcast.
Pivotal's Brian Wieser notes the damned-if-you do, damned-if-you-don't nature of the Fox fight: Paying more for the Fox assets would definitely "reduce the value of Disney to its shareholders"; meanwhile, without the deal its strategic position is weaker without expected synergies.
Disney can still emphasize a direct-to-consumer approach without the Fox assets, but its propositions both to viewers and to content creators is stronger with Fox. (h/t Bloomberg)
Wieser's price target is at $93, vs. Disney's current price of $107.25 (13.3% downside).
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