Time Warner Deal Could Mean Fox Sells BSkyB Stake: Credit Suisse
2014-07-17 09:50:55.782 GMT
By Blanche Gatt
July 17 (Bloomberg) -- If Fox deal to buy Time Warner went
ahead, it could mean greater likelihood Fox will sell its stake
in BSkyB (underperform, PT 600p), Credit Suisse says in note.
* Credit Suisse says a deal implies Fox’s L/T priorities may
be moving away from ownership to distribution assets
* Fox may also consider selling its 39% BSkyB stake, worth
$9.3b at current prices/FX, if it wants to increase the
cash portion of its offer
* A deal could prompt consolidation between TV networks,
TV studios that are seeking to sell into U.S. market
* This supports Credit Suisse investment view on ITV
(outperform, PT 250p)
* Could cut bargaining power of TV broadcasters who rely
more heavily on access to content from U.S. TV studios
* This could be negative for ProSiebenSat.1 (outperform,
PT EU35)
* NOTE yday: 21st Century Fox May ‘Stretch’ Time Warner Bid to
$120-Shr: FBR
* NOTE July 16: Time Warner Says Board Determined Fox Offer
Not in Best Interest
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To contact the reporter on this story:
Blanche Gatt in London at +44-20-7392-0351 or
bgatt@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
2014-07-17 09:50:55.782 GMT
By Blanche Gatt
July 17 (Bloomberg) -- If Fox deal to buy Time Warner went
ahead, it could mean greater likelihood Fox will sell its stake
in BSkyB (underperform, PT 600p), Credit Suisse says in note.
* Credit Suisse says a deal implies Fox’s L/T priorities may
be moving away from ownership to distribution assets
* Fox may also consider selling its 39% BSkyB stake, worth
$9.3b at current prices/FX, if it wants to increase the
cash portion of its offer
* A deal could prompt consolidation between TV networks,
TV studios that are seeking to sell into U.S. market
* This supports Credit Suisse investment view on ITV
(outperform, PT 250p)
* Could cut bargaining power of TV broadcasters who rely
more heavily on access to content from U.S. TV studios
* This could be negative for ProSiebenSat.1 (outperform,
PT EU35)
* NOTE yday: 21st Century Fox May ‘Stretch’ Time Warner Bid to
$120-Shr: FBR
* NOTE July 16: Time Warner Says Board Determined Fox Offer
Not in Best Interest
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Blanche Gatt in London at +44-20-7392-0351 or
bgatt@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net