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Fox Should Dump Broadcast Net, Says Wall Street Analyst

Y2kTheNewOldies

Y2kTheNewOldies

https://tvnewscheck.com/article/top...-dump-broadcast-net-says-wall-street-analyst/

In a note to clients today, the influential Wall Street research firm MoffettNathanson mulls whether Fox Corp. should sell the Fox network and stations and concludes with an emphatic yes.

“We see no material business logic for Fox to hold onto the Fox broadcast network given the modest value that the market is ascribing to the television segment,” the 22-page analysis says.

Prior its spin off of its core entertainment assets to Disney last year, owning the broadcast network made strategic sense. It served as an outlet for the Fox Hollywood production and syndication arms and it could be used to promote and support the regional sports and other cable networks.

“Finally, when the company was interested in using the promotional power of their footprint and the ownership of key scripted content to build a major SVOD service like Hulu, the ownership of the Fox network made a ton of sense.

“But that was then and this is now.” it says. Without the strategic value, it says, Fox Corp. would be better off selling the network to a studio owner like AT&T’s WarnerMedia or to any entity looking to use the power of broadcasting to launch direct-to-consumer streaming services.
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It will be interesting to see what Fox next move will be now that the report analysis has been released. I knew Fox was getting into the streaming outlet with Tubi as a ploy to go after PlutoTV for viewers. Also they Launched Fox Soul and News Now by Fox but its long term success pending. If Fox Dumped the network and its O&O's I would like to see the next move here. Another part here is that Fox cannot be too dependent on Fox News because they have to deal with competitors trying to attract right wing audiences.
 
Seems to me the most out-dated part of the News Corps portfolio is the newspapers. I know that's how Rupert started the company. But its the least relevant piece right now. But yes, towers and transmitters are not the future, and the other media companies know that.
 
TheBigA said:
Seems to me the most out-dated part of the News Corps portfolio is the newspapers. I know that's how Rupert started the company. But its the least relevant piece right now. But yes, towers and transmitters are not the future, and the other media companies know that.
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Warnermedia is also an odd candidate for Fox Broadcasting Company and the O&O's given that they are going through management changes and are placing their bets on HBO Max.

Not sure who they have in mind or if Fox ever had any of this in mind to begin with prior to the report by a Wall Street Analyst.
 
RadioPatrol said:
Warnermedia is also an odd candidate for Fox Broadcasting Company and the O&O's
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I wasn't going to go there, but since you brought it up, Warner has done a fine job staying away from traditional media, so I see no reason why they'd want to jump in the pool now. My view is the most likely buyers are the same groups who tried to buy Tribune or Cox. You might add Gray, who is becoming a force in nationally distributed TV content.

https://www.rbr.com/gray-tv-worth-more-than-fox-network-and-its-oos/

Having said all that, I don't believe Fox is interesting in selling broadcast at this time. They have already amassed the war chest they need to invest in more digital, and owning the broadcast net gives them a certain revenue stream while they're building the next big platform.
 
TheBigA said:
I wasn't going to go there, but since you brought it up, Warner has done a fine job staying away from traditional media, so I see no reason why they'd want to jump in the pool now. My view is the most likely buyers are the same groups who tried to buy Tribune or Cox. You might add Gray, who is becoming a force in nationally distributed TV content.

https://www.rbr.com/gray-tv-worth-more-than-fox-network-and-its-oos/

Having said all that, I don't believe Fox is interesting in selling broadcast at this time. They have already amassed the war chest they need to invest in more digital, and owning the broadcast net gives them a certain revenue stream while they're building the next big platform.
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Isn't Warner still involved in The CW?
 
TheBigA said:
Seems to me the most out-dated part of the News Corps portfolio is the newspapers. I know that's how Rupert started the company. But its the least relevant piece right now.
Click to expand...

News Corp. (newspapers) and Fox Corp. (Fox television and studio) were split up years ago, before the studio was sold to Disney. The only link between the two is the large ownership interest the Murdochs have in both companies.
 
TheBigA said:
I wasn't going to go there, but since you brought it up, Warner has done a fine job staying away from traditional media, so I see no reason why they'd want to jump in the pool now. My view is the most likely buyers are the same groups who tried to buy Tribune or Cox. You might add Gray, who is becoming a force in nationally distributed TV content.

https://www.rbr.com/gray-tv-worth-more-than-fox-network-and-its-oos/

Having said all that, I don't believe Fox is interesting in selling broadcast at this time. They have already amassed the war chest they need to invest in more digital, and owning the broadcast net gives them a certain revenue stream while they're building the next big platform.
Click to expand...

I never thought of this one Gray being more valuable than Fox Network and the Fox O&O's. I knew in recent years Fox has been responding to the issues surrounding Fox News and the management fearing that Fox News might lose its value due to other right wing outlets such as OANN, and Newsmax taking away their traditional core viewers of their outlets. On the O&O's side Fox feared of Sinclair taking away their viewers in some markets though.
 
RadioPatrol said:
https://variety.com/2019/tv/news/fox-bobs-burgers-bento-box-entertainment-1203294255/

Fox did have investments in a studio post Disney deal called Bento Box Entertainment but the long term strategy was to grow this studio and make shows for Fox. But that's been delayed due to COVID-19.
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I thought they were putting more emphasis on Bento Box due to COVID-19? It's an animated studio, and animation could be the only thing we see for a while.

That said, it never made sense to me why Fox kept the broadcasting network, other than Disney not being able to acquire it due to owning ABC. The future of broadcasting networks deems to be either sports, or a method to promote the other content ventures. I could see AT&T possibly having interest in it, but even that would be a stretch (there were executives that were interested in relaunching "The WB" but I believe that was shelved with the AT&T acquisition, and the future seems to be HBO Max for them).

A Sinclair/Fox merger seems more likely. Sinclair has long wanted to get into Cable News, already has a huge sports presence, and definitely wants to expand the broadcast assets they own. The question is, can they afford it?
 
TheBigA said:
Having said all that, I don't believe Fox is interesting in selling broadcast at this time. They have already amassed the war chest they need to invest in more digital, and owning the broadcast net gives them a certain revenue stream while they're building the next big platform.
Click to expand...

Like most O&O groups, FOX is pretty much stuck with their stations until the pandemic storm is over and advertising revenue settles out to it's latest incarnation.

If I were an adviser, I would consider dumping FOX News now that it's close to jumping the shark. Like AM is to talk radio, FOX News loyal viewers have a definite, accelerating shelf life. Unless FOX wants to ride this editorial train to the end of the line, there is little chance of new, younger viewers jumping aboard in the upcoming five years. Then what? The current Administration has tanked the GOP, so it's going to have to rebuild anyway.
 
Kelly A said:
Like most O&O groups, FOX is pretty much stuck with their stations until the pandemic storm is over and advertising revenue settles out to it's latest incarnation.

If I were an adviser, I would consider dumping FOX News now that it's close to jumping the shark. Like AM is to talk radio, FOX News loyal viewers have a definite, accelerating shelf life. Unless FOX wants to ride this editorial train to the end of the line, there is little chance of new, younger viewers jumping aboard in the upcoming five years. Then what? The current Administration has tanked the GOP, so it's going to have to rebuild anyway.
Click to expand...

Also Fox News has to respond to competitors such as Newsmax and OAN Network getting Republicans away from Fox News though.
 
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