Market Overview

What The Disney-Fox Deal Means For The Box Office

Share:
What The Disney-Fox Deal Means For The Box Office
Related DIS
The Legacy Of Stan Lee: Marvel Comics Mastermind, Box Office Gold
Bulls & Bears Of The Week: Apple, Disney, Ford, Target And More
How Is Netflix Performing In India (Seeking Alpha)
Related FOXA
The Street Weighs In On Disney's Q4 Earnings, ESPN And Streaming Among Highlights
Cold Start: Worries About Hawkish Fed, Rising Prices Seem To Weigh On Sentiment
Variety: Two studios set to restart video-release fight (Seeking Alpha)

Walt Disney Co (NYSE: DIS) confirmed Thursday what investors expected: an agreement to acquire entertainment and media properties from Twenty-First Century Fox Inc (NYSE: FOXA).

The Analyst

Midtown Partners' Rich Tullo.

The Thesis

The combination of Disney and Fox's assets is "potentially powerful" and "look like an NBA super team on paper," Tullo said in a note. While Tullo doesn't cover either company on a research basis, the analyst offered some of the following thoughts:

  • The combined entity could be "hounded" by regulatory bodies and a consumer push back.
  • The value of the deal at $54 is "in the right ballpark" given Fox's movie and TV catalog along with over 2,000 other titles.
  • Deep and well curated content is key to success in media and a winning formula to generate long-term shareholder value.
  • Pushback to the deal could come from content peers, legacy MPVD services and consumers.
  • Ten out of the top 20 box office films this year were distributed by either Disney or Fox.

Price Action

Shares of Disney were nearly unchanged Thursday morning, while Fox's stock gained about 3 percent.

Related Links:

Pivotal Breaks Down The Disney-Fox Bid

Disney Headwinds Could Soon Shift To Tailwinds; Is Now The Time To Buy?

Latest Ratings for DIS

DateFirmActionFromTo
Nov 2018ArgusMaintainsBuyBuy
Oct 2018BarclaysUpgradesEqual-WeightOverweight
Oct 2018Morgan StanleyMaintainsOverweightOverweight

View More Analyst Ratings for DIS
View the Latest Analyst Ratings

Posted-In: entertainment media Midtown PartnersAnalyst Color News M&A Top Stories Analyst Ratings Best of Benzinga

 

Related Articles (DIS + FOXA)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
LXFTKeyBancDowngrades0.0
CPAImperial CapitalDowngrades68.0
PRMWImperial CapitalInitiates Coverage On18.0
TGTKeyBancInitiates Coverage On110.0
QCOMMorgan StanleyUpgrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Jim Chanos Compares Bitcoin To Beanie Babies: 'It's A Speculative Mania'

Hollywood News Dominates Wall Street Today As Disney Announces Big Merger