Disney/Fox Not an Obvious Fit, BTIG's Greenfield Says as Ryvicker Sees Value in Combination
Disney's rumored interest in buying part of Fox (see 1711060062) raises questions, BTIG's Rich Greenfield emailed investors Tuesday. He said news of Disney interest could lead to Fox finding out if other players, such as Verizon or Comcast, might also…
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be interested. The analyst said word that Fox might sell its share of Sky could point to it being convinced regulators won't let the remainder of Fox's buyout of the rest of Sky go through. The UK Competition and Markets Authority is reviewing that deal (see 1710100029). Greenfield said Disney's wanting to increase its exposure to sports-centric overseas cable networks makes little sense. Greenfield said Fox TV Studios could help create content for Disney's over-the-top offering, but most Fox TV content heads would stay with the Fox TV network that would stay with Fox, and HBO's deal for Fox film studio content doesn't expire until the end of 2022. He said Disney/Fox could hit regulatory problems from dominance of film studios and opposition from theater owners and film industry guilds. Wells Fargo analyst Marci Ryvicker emailed investors that Fox could go for $41 per share, or $47 if all of Sky were included. She said Fox's cable networks could be worth up to $75 billion, the film business could be valued at $13 billion and the TV business $7 billion. Ryvicker said Fox has attractive assets and Disney "an exceptionally strong" balance sheet.