Author Topic: FOXA - Twenty-First Century Fox Inc  (Read 33517 times)

Foreign Tuffett

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Re: FOXA - Twenty-First Century Fox Inc
« Reply #30 on: June 14, 2019, 06:20:55 AM »
So Rupert Murdoch buys 600,000 shares between June 5th and June 7th. He then immediately sells them with the following comment: "The subject shares have been purchased in error, which purchase has been deemed inadvertent and the subject shares were promptly sold. Any short swing profit resulting from the erroneous purchase and subsequent sale will be returned to the Issuer."

https://www.sec.gov/Archives/edgar/data/1024835/000120919119036013/xslF345X03/doc4.xml

Yesterday, this was filed:

https://www.sec.gov/Archives/edgar/data/1754301/000119312519172488/d764331d8k.htm

Someone correct me if I'm misinterpreting this, but it looks like Rupert, feeling bullish, inadvertently violated an arcane provision of a "Rights Agreement" when he bought more Class A shares. Now it's been amended to allow him to do so. It's going to be interesting to see if he buys more shares in the open market in the near future.
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walkie518

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Re: FOXA - Twenty-First Century Fox Inc
« Reply #31 on: August 01, 2019, 12:04:17 PM »
looks like he bought them back?

buying FOX rather than FOXA should give investors of non-voting some pause? 

I have no idea why FOX does not trades for a premium to FOXA? Aren't votes worth something?

tax assets are pretty material ... does anyone have a sense as to why the market is so negative on this stock?  OTT attrition reported from cablecos?

Spekulatius

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Re: FOXA - Twenty-First Century Fox Inc
« Reply #32 on: August 08, 2019, 02:58:24 PM »
FOX selling off 5% today after an earnings report that looks decent. I added a few shares, what is the reason for the selloff? I like their business focus on live entertainment (Fox news, Fox sports) and the valuation seems undemanding:
https://investor.foxcorporation.com/static-files/fe618a7b-29e3-4ac7-8048-4cad987d7b45
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walkie518

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Re: FOXA - Twenty-First Century Fox Inc
« Reply #33 on: August 09, 2019, 05:42:37 PM »
FOX selling off 5% today after an earnings report that looks decent. I added a few shares, what is the reason for the selloff? I like their business focus on live entertainment (Fox news, Fox sports) and the valuation seems undemanding:
https://investor.foxcorporation.com/static-files/fe618a7b-29e3-4ac7-8048-4cad987d7b45
perhaps the market doesn't like the consumer credit deal? maybe this is m&a drift despite supposed synergies?


Spekulatius

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Re: FOXA - Twenty-First Century Fox Inc
« Reply #34 on: August 09, 2019, 05:53:27 PM »
FOX selling off 5% today after an earnings report that looks decent. I added a few shares, what is the reason for the selloff? I like their business focus on live entertainment (Fox news, Fox sports) and the valuation seems undemanding:
https://investor.foxcorporation.com/static-files/fe618a7b-29e3-4ac7-8048-4cad987d7b45
perhaps the market doesn't like the consumer credit deal? maybe this is m&a drift despite supposed synergies?

Itís possible, although the deal quite small. They also seem like they want to rebuild their content production (after they sold of their film Studio to Disney) even though before they have claimed they are happy to be just part owner of the content that it created specifically for their channel. I think the Market sense style drift.

The downdraft in the stock occurred after the earnings release, not after the news release of the acquisition (which was a bit before). I sense a negative brokerage report or something like this.
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Okonomen

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Re: FOXA - Twenty-First Century Fox Inc
« Reply #35 on: August 10, 2019, 02:09:28 AM »
I have been a shareholder for some months now. Really like the moaty nature of the brand, the resilience against cord cutting and the attractive price. I remember reading from the transcript at the investor day that mgmt. was very keen on staying within their circle of competence. Lachlan specifically mentioned the "circle of competence". Therefore it baffles me that they suddenly buy Credible Labs, albeit small still completely non-core. That worries me as Lachlan has a lot to prove and doesn't have the best reputation

I think the 5% decline has more to do with an analyst at Rosenblatt Securities releasing a somewhat bearish thesis focusing on cord cutting, increasing SG&A cost after spinoff and the looming NFL renewal

Anyone who knows 1) how probable is an NFL renewal for Fox and 2) what will the P/L effect be if no renewal?

I guess a renewal could also be at a much higher cost which would also hurt

Spekulatius

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Re: FOXA - Twenty-First Century Fox Inc
« Reply #36 on: August 10, 2019, 05:00:41 AM »
I have been a shareholder for some months now. Really like the moaty nature of the brand, the resilience against cord cutting and the attractive price. I remember reading from the transcript at the investor day that mgmt. was very keen on staying within their circle of competence. Lachlan specifically mentioned the "circle of competence". Therefore it baffles me that they suddenly buy Credible Labs, albeit small still completely non-core. That worries me as Lachlan has a lot to prove and doesn't have the best reputation

I think the 5% decline has more to do with an analyst at Rosenblatt Securities releasing a somewhat bearish thesis focusing on cord cutting, increasing SG&A cost after spinoff and the looming NFL renewal

Anyone who knows 1) how probable is an NFL renewal for Fox and 2) what will the P/L effect be if no renewal?

I guess a renewal could also be at a much higher cost which would also hurt

I believe that 75% of the EBITDA comes from Fox News (Morningstar?, forgot the source), so that gives us an idea how much an NFL deal could impact earnings, as it only would impact Fox sports. I am sure they would find mitigating factors. Fox is less affected by cord cutting, they lost 1% of their subscribers YoY (I think this was mentioned in the CC), which less than peers (3% loss average).

I agree on Lachlan being a concern.
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Nomad

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Re: FOXA - Twenty-First Century Fox Inc
« Reply #37 on: August 11, 2019, 01:53:13 PM »
Lachlan specifically mentioned the "circle of competence". Therefore it baffles me that they suddenly buy Credible Labs, albeit small still completely non-core. That worries me as Lachlan has a lot to prove and doesn't have the best reputation

His first major capital allocation decision has been bizarre, to say the least. What am I missing here? I've wracked my brain trying to figure out what the strategic rationale for the acquisition is but have yet to come up with any good answers. I completely agree with the others in this thread who see management as the primary risk here.

Okonomen

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Re: FOXA - Twenty-First Century Fox Inc
« Reply #38 on: August 11, 2019, 02:14:23 PM »
Nevertheless the Murdochs are very well aligned with us. I think the Bento acq was okay and synergetic with the broadcasting which has a lot of potential. But if they do a few more buys like Credible Iím out

walkie518

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Re: FOXA - Twenty-First Century Fox Inc
« Reply #39 on: August 12, 2019, 08:41:10 AM »
Lachlan specifically mentioned the "circle of competence". Therefore it baffles me that they suddenly buy Credible Labs, albeit small still completely non-core. That worries me as Lachlan has a lot to prove and doesn't have the best reputation

His first major capital allocation decision has been bizarre, to say the least. What am I missing here? I've wracked my brain trying to figure out what the strategic rationale for the acquisition is but have yet to come up with any good answers. I completely agree with the others in this thread who see management as the primary risk here.

This might be a stretch, but Credbile does credit checks.  I would think that this kind of a business, provided that the data remains private, could be used to target ads better/cheaper/more effectively?  This could be an interesting angle for the upcoming elections?