We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Twenty-First Century Fox's Sky Buyout Hits Further Roadblock
Read MoreHide Full Article
Rupert Murdoch’s Twenty-First Century Fox, Inc.‘s (FOXA - Free Report) proposed acquisition of remaining 61% stake in Europe’s leading pay-TV broadcaster Sky plc hit a further roadblock after U.K. Culture Secretary Karen Bradley demanded detailed review from the Competition and Markets Authority (“CMA”).
Bradley had earlier demanded a review as the deal “potentially raises public interest concerns”. However, what came as a surprise is that she now also wants reviewers to examine the company’s commitment to broadcasting standards.
The U.K.’s Office of Communications commonly known as Ofcom had no problem regarding Twenty-First Century Fox’s capability to match U.K. broadcasting criteria. Earlier, Bradley also had no concerns about the company’s commitment toward broadcasting standards. As the matter is referred for further review the company expects deal to be sealed by Jun 30, 2018.
We believe this is a major setback for Twenty-First Century Fox. The deal which is valued at $15.2 billion will strengthen the company’s position in pay-TV network in Britain, Ireland, Austria, Germany and Italy. As of 2016, Sky already has 21 million pay-TV subscribers and 30,000 employees. Moreover, the deal will reinforce Sky’s position in entertainment and sport, and will also augment adjusted earnings and free cash flow.
Despite this discouraging news mot much movement was witnessed in the company’s share price. However, we noted that the stock has declined 15.1% in the past six months, wider than the industry’s decrease of 11.5%. Over the same period, other stocks from the same space which include Lions Gate Entertainment Corp. (LGF.A - Free Report) and Eros International Plc have gained 17.6% and 28.5%, respectively, while World Wrestling Entertainment, Inc. has increased 7.9%.
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Twenty-First Century Fox's Sky Buyout Hits Further Roadblock
Rupert Murdoch’s Twenty-First Century Fox, Inc.‘s (FOXA - Free Report) proposed acquisition of remaining 61% stake in Europe’s leading pay-TV broadcaster Sky plc hit a further roadblock after U.K. Culture Secretary Karen Bradley demanded detailed review from the Competition and Markets Authority (“CMA”).
Bradley had earlier demanded a review as the deal “potentially raises public interest concerns”. However, what came as a surprise is that she now also wants reviewers to examine the company’s commitment to broadcasting standards.
The U.K.’s Office of Communications commonly known as Ofcom had no problem regarding Twenty-First Century Fox’s capability to match U.K. broadcasting criteria. Earlier, Bradley also had no concerns about the company’s commitment toward broadcasting standards. As the matter is referred for further review the company expects deal to be sealed by Jun 30, 2018.
We believe this is a major setback for Twenty-First Century Fox. The deal which is valued at $15.2 billion will strengthen the company’s position in pay-TV network in Britain, Ireland, Austria, Germany and Italy. As of 2016, Sky already has 21 million pay-TV subscribers and 30,000 employees. Moreover, the deal will reinforce Sky’s position in entertainment and sport, and will also augment adjusted earnings and free cash flow.
Despite this discouraging news mot much movement was witnessed in the company’s share price. However, we noted that the stock has declined 15.1% in the past six months, wider than the industry’s decrease of 11.5%. Over the same period, other stocks from the same space which include Lions Gate Entertainment Corp. (LGF.A - Free Report) and Eros International Plc have gained 17.6% and 28.5%, respectively, while World Wrestling Entertainment, Inc. has increased 7.9%.
Twenty-First Century Fox currently carries a Zacks Rank #3 (hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>