The new Comcast (NASDAQ:CMCSA) would certainly be more diversified

Comcast’s $65B bid for Twenty-First Century Fox’s film and TV studios, cable entertainment and regional sports networks and international TV businesses was greeted by the markets with enthusiasm. We attribute this reaction to fear that the bid would be even higher — in reality, CMCSA’s offer was little changed from its proposal to Fox’s board this past December.

The new Comcast, including Fox’s assets and 100% of Sky plc, would further diversify Comcast away from its roots as a distributor of video programming and Internet service. More than 40% of EBITDA would be generated by content assets, up from roughly one-quarter today. The prevailing worldview is that “content is king”, and CEOs of legacy cable and telecom service providers have taken the message to heart.

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