Murdoch Could Benefit from the Fox-Time Warner Deal
Published By : 23 Jul 2014 | Published By : QYRESEARCH
The move of Rupert Murdoch buying Time Warner will help the company Twenty-First Century Fox chairman to make larger inroads in China, which is the fastest growing economy in the world and targeted by media moguls currently.
The board of Time Warner rejected Murdoch’s USD 80 billion offer, however, the Fox chairman is expected to continue to seek the deal. This deal would create a giant which will generate revenues over USD 37 billion a year in Canada and United States.
The deal will also help to double the revenues generated by Fox corp. from the emerging media market in countries in Latin America and Asia-Pacific.
According to the CEO of GAMCO Investors, Mario Gabelli (who owns shares in both Timer Warner and Fox) said that Murdoch thinks 3 billion new consumers will help to raise a middle class in India and China, and mobile devices create a strong demand for content. The CEO also said that Murdoch will be with a deal of such a potential will be able to generate Netflixes of his own.
In the previous year, Fox generated around 42 percent of its revenue which were outside of Canada and United States. This company’s revenues from Asia include those in China and Japan. These revenues have developed by 40 percent to USD 2.1 billion in the period of two years.
Time Warner company’s collection of cable channel would however, complement Fox company’s programming in other key territories.