Fox Corporation to trade two classes of stock
21st Century Fox (FOX) recently filed a registration statement with the US Securities and Exchange Commission for Fox Corporation, the new entity that will take its place upon the closing of the Walt Disney Company (DIS) transaction. Disney agreed to purchase most of 21st Century Fox’s entertainment assets for $71.3 billion in cash and stock following a bidding war with Comcast (CMCSA), which also sought to purchase the assets.
Fox Corporation wants to have two classes of stock that will trade on the NASDAQ Global Select Market.
Focus on news and sports programming
Fox Corporation will primarily focus on news and sports programming, but the company suffered a blow after Comcast trounced it in the contest to acquire European broadcaster Sky, which owns the rights to lucrative sports events in Europe.
Sports programming has emerged as an area of interest for Internet companies such as Amazon (AMZN) and Facebook (FB), which have in recent months acquired the broadcasting rights to various high-profile sports. Facebook, for instance, owns the rights to broadcast Spain’s La Liga soccer matches.
Fox’s revenue rose 2.0%
Fox Corporation’s focus on news and sports programming will likely keep it off of Netflix (NFLX), a major disruptor of the traditional media industry. The leading video streaming company, which boasts more than 130 million paying subscribers worldwide, has so far given news and sports programming a wide berth.
21st Century Fox generated $7.2 billion in revenue in its first quarter of fiscal 2019, which ended in September 2018. Its revenue rose 2.0% year-over-year in the quarter.