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Maverick Capital Sells Its Position in Twenty-First Century Fox

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Apr. 17 2015, Updated 9:10 a.m. ET

Maverick Capital and Twenty-First Century Fox

In the fourth quarter of 2014, Maverick Capital sold its position in entertainment giant Twenty-First Century Fox (FOXA), which accounted for 2.65% of the fund’s portfolio. The fund held 5,280,500 shares of Twenty-First Century Fox.

Other media and telecommunications companies in Maverick Capital’s portfolio were CBS Corp. (CBS) and Liberty Global (LBTYA), which together comprise 9% of the hedge fund’s portfolio.

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Disposal of Sky Italia and Sky Deutschland

In November 2014, Fox sold its 100% stake in Sky Italia and its 57% ownership in Sky Deutschland to television behemoth British Sky Broadcasting Group (or BSkyB) for about $8.8 billion. Fox received $8.2 billion of this amount in cash. The remaining $650 million went into buying a 21% interest in BSkyB’s NGC International, which took Fox’s ownership stake in NGC International to 73%.

Strong 2Q15 performance

Excluding revenues from the DBS segment, in which Sky Italia and Sky Deutschland had operated, Fox’s revenues grew 10% year-over-year (or YoY) to $7.4 billion. This increase represented higher revenues from the Cable Network Programming segment and higher theatrical revenues from the Filmed Entertainment segment.

Adjusted net earnings came to $1.1 billion, or $0.53 per share, compared with $756 million, or $0.33 per share, for the corresponding quarter during the previous year. These figures do not include sales gains for the DBS business and other one-time events.

Fox comprises 0.01% of the Vanguard Mid-Cap ETF (VO). The company is also a component of the Consumer Discretionary Select Sector SPDR Fund (XLY). Fox accounts for 2.72% of XLY’s portfolio.

Overview of Twenty-First Century Fox

Twenty-First Century Fox (FOXA), a diversified global media and entertainment company, is home to a number of cable, broadcasting, and film networks and properties:

  • Fox Broadcasting Company
  • FX
  • Fox News Channel
  • Fox Business Network
  • Fox Sports
  • National Geographic Channel (or NGC)
  • Yankees Entertainment and Sports (or YES) Network
  • Fox Pan American Sports
  • MundoFOX
  • STAR TV
  • Twentieth Century Fox Film Corporation
  • Twentieth Century Fox Television
  • Shine Group

Fox operates under five reporting segments:

  • Cable Network Programming
  • Television
  • Filmed Entertainment
  • Direct Broadcast Satellite Television (or DBS)
  • Other, Corporate, and Eliminations

The next article in this series will explore Maverick Capital’s position change in Cognizant Technology Solutions.

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