As Fox (FOX) (FOXA) continues to benefit from the incipient bidding war for the majority of its assets, I continue to regard NewFox, the company that will be left behind post-merger, as the potential hidden gem for Fox shareholders. I am not alone in this view, but most commentary has focused on NewFox's cable operations, which will certainly represent the bulk of its revenue going forward, focusing on news and sports. While this is undoubtedly a source of value, I think some may be underestimating just how valuable Fox's broadcast stations will be, even shorn of their production houses.
Merger Update
Fox's deal with Disney (DIS) received official DOJ approval after they agreedto spin off the 22 regional sports networks Fox owns separately. That is in addition to Fox Sports 1 and Fox Sports 2 already staying behind in NewFox Co., so Disney is now receiving little in the way of new sports properties - but with ESPN already in hand and many considering the company overexposed to sports already, that is probably not the worst thing that could have happened to Disney.
