Business Strategy and Outlook
| Neil Macker, CFA |After completing the Disney transaction in March 2019, the Murdoch clan now oversees a much smaller media firm, albeit one that controls major media brands. Fox consists of the Fox network, 28 local TV stations, Fox News Group, and Fox Sports. The new 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 operating income for Fox Corp. We believe these bets are well placed given our expectations for the evolution of the television industry, but Fox is now undiversified relative to other media firms.