Despite Paramount’s enduring high-profile woes in finalizing its impending M&A deal, media deals are very much back on the scene. Fox, it would appear, is now keen to find themselves a great deal among current offerings. Our Blake & Wang P.A. entertainment lawyer, Brandon Blake, analyzes this intriguing development further.
A Strong Balance Sheet
Speaking at the end of their recent Goldman Sachs media conference session, CEO Lachlan Murdoch gave a rather unusual hint that Fox is looking for new M&A opportunities in answer to questions about the company’s projected evolution over the coming few years.
Not only is it odd for a CEO not to focus on current growth and investments, but the M&A space has been more characterized by very rocky deals than it has smooth ones in recent years. After all, neither Paramount nor Warner Bros. Discovery had a textbook merger experience. However, as he swiftly pointed out, Fox itself is in a far stronger position, including in its balance sheet, than either of those entities. A smart deal may, indeed, be only a “modest” investment for them, as he stated.
Potential Deals
We already know that Fox intends to exercise its option to take control of 18% of the FanDuel sports betting platform sometime before 2030, as they have kicked off licensing approval with regulators for the deal. However, where else may they be looking?
It’s unlikely to be linear entertainment. With cord-cutting set to accelerate and the company already having its Fox network and stations, it’s unlikely to turn up a compelling deal. Likewise, their foray into a streaming sports venture was recently blocked legally, although that matter is still working its way through the courts.
For now, we can only speculate. However, this will be something to watch going forward. Perhaps Fox will be the company to succeed in giving us the first smooth M&A takeover of recent years.
Film and Television 