21st Century Fox
On May 18, 2015, 21st Century Fox (FOXA) participated in J.P.Morgan’s Global Technology, Media and Telecom (or TMT) Conference. At the beginning of the conference, Jennifer Nason, global chairman of J.P.Morgan’s TMT Investment Banking practice, referred to a conversation she had with Jimmy Lee, vice chairman at J.P.Morgan. Nason said, “Jimmy has said in the past of James [Murdoch], James sits on top of one of the world’s great truly scaled companies positioned for growth with uniquely valuable content and networks protected by a fortress balance sheet.” James Rupert Murdoch is co-chief operating officer of 21st Century Fox.
Media company 21st Century Fox is one of the largest in the United States. It operates in cable networks, film, and television. The company generated revenue of ~$6.8 billion and OIBDA (operating income before depreciation and amortization) of ~$1.7 billion in fiscal 3Q15.
As you can see in the chart above, Cable Network Programming is the company’s largest segment. It contributed revenue of ~$3.6 billion and OIBDA of ~$1.2 billion in 3Q15. Some of the company’s key networks include FOX News, FSN (Fox Sports Networks), FOX Sports, FX, National Geographic US, and FIC (Fox International Channels).
Filmed Entertainment is the company’s second largest segment. It contributed revenue of ~$2.4 billion and OIBDA of ~$0.4 billion in 3Q15. The company’s key studios are 20th Century Fox, Fox 2000 Pictures, Fox Searchlight Pictures, and 20th Century Fox Animation.
Television is the company’s smallest segment. It’s made up of FOX, the company’s broadcast network, and the television stations.
Largest players in the media industry
The third largest media company in the United States is 21st Century Fox. It has a market capitalization of ~$70.36 billion as of May 22, 2015. The Walt Disney Company (DIS) and Comcast (CMCSA) are the two largest media companies in the United States.
Walt Disney had a market capitalization of ~$187.08 billion on May 22. Comcast had a market capitalization of ~$145.37 billion on the same date. Time Warner (TWX) is the fourth largest US media company and closely follows 21st Century Fox. Time Warner had a market capitalization of ~$70.26 billion on May 22.
If you want to take a diversified exposure to 21st Century Fox, you may invest in the Consumer Discretionary Select Sector SPDR Fund (XLY). It held ~2.7% in the media conglomerate on April 30, 2015. You may take a more diversified exposure to the company by investing in the SPDR S&P 500 ETF (SPY). It held ~0.3% in the company on the same date.