Opinions
Jim Cramer - Mad Money
Twenty-First Century Fox
FOXA-Q
BUY
Jul 31, 2024
Stock price when the opinion was issued
You might be interested:
Content is king, so when trying to evaluate how to best play what’s happening, generally to their content consumption, you want to have exposure to the guys that own the content because they will be able to monetize it. This company has an excellent platform, great sports rights but he doesn’t think are fully reflected in the value. He thinks Fair Value is $40. Because of their good content, they are going to their affiliates that carry their channels and telling them they have to pay them a lot more. Expects this will essentially double in the next 3-4 years. Increasing dividends and buying back a lot of stock.
They are having discussions with DIS-N over assets. DIS-N is best in breed and have the best ability to monetize content. They are exceptional at it. Ultimately they will fix the ESPN stuff. However he would not touch any media right now. When it turns you want to go with the strong one, DIS-N.
Cord-cutting remains a serious problem, but live-event viewing endures--sports and news--which Fox programs heavily. He expects them to report a good quarter tomorrow.