Business Strategy and Outlook| Neil Macker |
After completing the Disney transaction in March 2019, the Murdoch clan now oversees a much smaller media firm, albeit one that still controls major media brands. Fox consists of the Fox network, 28 local TV stations, Fox News Group, Fox Sports, Tubi, and investments in related and unrelated assets including Credible Labs, a consumer fintech firm. The slimmer firm represents a large bet on the viability of live sports and news, as we project that the cable networks, including Fox News and FS1, will generate the vast majority of the operating income. We believe these bets are well placed, but Fox is now undiversified relative to other media firms, all of which own significant subscription streaming platforms.