Analysts See Hurdles to Reported Comcast Offer for Fox
Analysts see Comcast's supposedly working toward an all-cash offer for Fox as carrying multiple challenges. The reported offer could "face a stiff fight" for Fox and Sky "and will likely end up with neither," New Street Research analyst Jonathan Chaplin…
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emailed investors Tuesday. If it does buy both, New Comcast might have to separate its cable and content businesses, though "it would be hard not to be excited about a phenomenal Cable asset coupled with a global content powerhouse," he said. Any Comcast interest in Fox is "just dumb" given the amount of debt Comcast would take on, the antitrust issues raised and the lack of synergies between the two, Ross Gerber, Gerber Kawasaki Wealth and Investment Management CEO, tweeted Tuesday. Disney, meanwhile, "is in such a good position they don’t need Fox, although it puts them in a more dominant position." Gerber said the company should put its focus on its ESPN and over-the-top apps. Comcast's interest in Sky and possible interest in Fox underscore its focus on differentiation through original content, while possibly pointing to "a large-scale Internet-delivered video strategy," Kagan analyst Tony Lenoir emailed. But a Fox bid could start a bidding war with Disney, which is counting on Fox programming assets for its over-the-top service, he said. Comcast didn't comment.