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.
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.
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
- Fox News Channel
- Fox Business Network
- Fox Sports
- National Geographic Channel (or NGC)
- Yankees Entertainment and Sports (or YES) Network
- Fox Pan American Sports
- STAR TV
- Twentieth Century Fox Film Corporation
- Twentieth Century Fox Television
- Shine Group
Fox operates under five reporting segments:
- Cable Network Programming
- 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.