Update shared on27 Sep 2025
Fair value Increased 1.56%Fox’s price target was modestly raised to $61.64 as strong live sports advertising, improved free cash flow projections, governance clarity following the Murdoch Family Trust resolution, and an expanded $5B buyback authorization enhanced analyst confidence.
Analyst Commentary
- Bullish analysts cite steady ratings strength and advertising momentum for live sports content, supporting a positive outlook on Fox.
- Upward revisions to advertising revenue forecasts and free cash flow projections, with one analyst raising full-year free cash flow expectation from $1.1B to $1.3B.
- Resolution of the Murdoch Family Trust dispute has removed a significant governance risk, providing long-term clarity and stability.
- Q4F25 results exceeded expectations, primarily due to strong ad revenue performance in both Cable Networks and TV segments.
- Fox management announced a substantial $5B increase in share repurchase authorization, highlighting confidence in the company’s financial position.
What's in the News
- Fox Corporation (FOXA), where Lachlan Murdoch is executive chair and CEO, is reportedly considering participating, potentially as an investor, in a consortium to acquire TikTok's U.S. operations; involvement would likely occur at the corporate level rather than individually (WSJ, CNBC, Axios).
- President Trump confirmed in a Fox News interview that investors in the proposed TikTok deal may include Michael Dell, Lachlan Murdoch, and Rupert Murdoch, with final group members to be disclosed soon; China's government has signaled approval for the preliminary terms (Axios, Reuters, WSJ).
- TikTok's U.S. entity would lease a version of ByteDance's algorithm, retrained by Oracle, as part of the deal; U.S. users would retain connectivity with global TikTok systems (Axios).
- Meta (META) has initiated discussions with Fox Corp. (FOX) and other media companies about licensing news articles for use in AI products; these talks are in preliminary stages (WSJ).
- California Governor Gavin Newsom filed a $787M defamation lawsuit against Fox News (FOX), alleging the network spread falsehoods regarding his communications with President Trump (Reuters).
Valuation Changes
Summary of Valuation Changes for Fox
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $60.69 to $61.64.
- The Future P/E for Fox remained effectively unchanged, moving only marginally from 16.51x to 16.78x.
- The Consensus Revenue Growth forecasts for Fox remained effectively unchanged, at 0.3% per annum.
Disclaimer
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