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Fly News Breaks for September 23, 2019
Sep 23, 2019 | 16:51 EDT
Wells Fargo analyst Steven Cahall initiated Fox Corp with an Underperform rating and a price target of $30. The analyst is warning that the rights costs for broadcasting sports are going up by about 7% per year, and he sees the company's operating expense rising by about 9% per year from 2018 to 2025. Cahall adds that while sports rights give leverage to networks in affiliate negotiations, consumers do not see the pricing proportionally, cautioning that related rate increases could reduce the value of a subscription bundle and lead to "intensified cord cutting."
News For FOXA From the Last 2 Days
Feb 21, 2020 | 15:54 EST
Fox Corp. (FOXA) has expressed interest in acquiring Tubi and the companies are discussing a deal that could be valued above $500M, people familiar with the matter tell The Wall Street Journal's Lillian Rizzo and Joe Flint. Tubi operates an ad-supported streaming service that carries reruns of television shows and movies and last year ViacomCBS (VIAC) bought Pluto TV, which has a similar platform, for $340M, the report noted. Reference Link