Comcast Out of Fox Bidding War, Focused on Landing Sky

Comcast

Comcast has dropped out of a bidding war with The Walt Disney Company (DIS) for 21st Century Fox’s (FOXA) film and television assets to focus its efforts on acquiring Sky Plc (SKYAY), the “crown jewel” of the Fox portfolio. By pulling out of the competition for Fox’s entertainment assets, Comcast avoids bidding up the implied value of SKYAY; the consequence of an “arcane provision in U.K. takeover rules”. Back on July 11th, Comcast (CMCSA) improved its cash offer for the European cable provider by 18% (to +/- $19.50/share, $34 billion); a 5% premium to the latest FOXA offer. Disney has indicated in regulatory filings that it will determine if FOXA is to continue with its pursuit of SKYAY; no decision has been made and one is not expected prior to the DIS shareholder vote on July 27th (re: Fox acquisition).

Howie Long-Short: Comcast’s decision to drop out of the bidding all but ensures that The Walt Disney Company (DIS) will take down the Fox film and tv assets. Of course, DIS had always been considered the front-runner for those FOXA properties having submitted the highest offer ($71.3 billion vs. Comcast’s $65 billion) and maintaining the support of both Rupert Murdoch and President Trump. Comcast shares popped 3% on the news, but nearly all gains realized were lost by Friday’s close ($34.30).

CMCSA appears to be willing to split the spoils with DIS, taking SKYAY and leaving the balance of the Fox assets for Disney’s taking. Comcast is now well positioned financially to outbid Disney should they make an aggressive play for SKYAY. BTIG Analyst Rich Greenfield expects that to happen saying, “while it is certainly possible that Fox (and in turn, Disney) is going to walk away from Sky and not match/exceed Comcast’s offer, it does feel hard to believe.”

SKYAY is the asset that Comcast really wants. The British pay-TV service could bring both the original content and distribution (satellite & broadband) capabilities to make the alliance “a mini Comcast-NBCU”. Adding 23 million subscribers across 7 countries, also give CMCSA the international expansion it seeks as the company strives to keep up with Amazon and Netflix in the global streaming race. While Comcast seeks 100% of Sky (including FOXA’s 39% stake), the company appears willing to settle for majority ownership; it’s unclear if Disney intends on selling its stake.

I asked Dan Cohen, Octagon SVP, Global Media Rights Consulting Division which deal (SKYAY or Fox Film/TV assets) contains the most valuable sports media rights?

Dan: Sky is the stronger sports specific acquisition with a robust portfolio not only in the UK, but other significant European markets. The crown jewel is obviously Premier League, but F1, Cricket and Golf are significant as well. Sky Italia offers up premium content after just renewing Serie A rights in Italy and Sky is a player in Ireland Spain, Germany and Austria.

Editor Note: Fox assets include Star India and Fox International channels, but no domestic rights. Comcast (had they continued pursuit of Fox assets) also intended on divesting the 22 RSNs to avoid anti-trust concerns.

Fan Marino: As Dan notes, SKYAY’s portfolio of sports broadcast rights is impressive (particularly the EPL), but the control over and value of those rights remains tentative. Exclusive broadcast deals cannot be counted on to last and as MoffettNathanson analyst Craig Moffett astutely pointed out, “absent these exclusives, Sky is, well, just satellite TV.”

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IPL (Cricket) Generates More Sponsorship Money Than MLB

IPL

Indian Premier League (IPL), India’s most profitable sporting league, generates more sponsorship dollars annually than Major League Baseball; despite its season being just 47 days long. Last year, in just its 11th season, IPL took in $1 billion in sponsorship revenue; 12% more ($892 million) than its baseball counterparts (founded in 1903). It’s not just sponsorship dollars that are ballooning in cricket though, newly signed broadcast deals, the rising value of title sponsorship rights and the increasing brand value of the individual teams has sent the league’s valuation soaring +26% (to $5.3 billion) over the last year. As former General Manager of the BCCI (Board of Control for Cricket in India) Amrit Mather explained, “cricket has shown through the IPL that it defies normal economics. Investing in cricket is a no-brainer.”

Howie Long-Short: Rupert Murdoch is certainly on board with Mather’s assessment. Back in September ’17 Fox acquired (Facebook and Sony were also interested) global broadcast rights to the IPL; agreeing to a 5-year deal worth $2.5 billion. In April, subsidiary Star India bought the television and digital broadcast rights to Indian cricket for $944 million (5 years, through ‘23), a +51.2% increase over the terms of their expiring deal. On a per match basis, Fox is paying just slightly less for Indian cricket than for English Premier League rights and more than both the NBA and MLB command. It should be mentioned that Indian cricket and IPL rights are likely headed to Disney as part of their $71.3 billion acquisition of FOXA film and television assets.

Vivo, a Chinese phone manufacturer, is the title sponsor of the IPL. The company paid $340 million for the annual tournament to be known as the Vivo IPL until ’22, a +554% increase over the value of their previous deal. Vivo is a subsidiary of BBK Electronics Corporation, the largest smartphone seller in India and the 3rd largest in the world. BBK Electronics is a privately held entity, there are no ways to invest in the company.

Fan Marino: You know how they turned a game from the 1500s into a commercial success? They shortened the length of the matches! Games that once took days, have been streamlined (known as Twenty20) to 3 hour blocks (max). Baseball purists won’t be on board, but MLB should consider doing something similar; attendance is down 10% (lowest in 15 years), primetime TV ratings were down 6% in ’17 and the sport has an aging fan base (57 years old, up from 52 just 5 years ago). I propose the 27 rule (I just coined that name); 2 hours or 7 innings, whatever comes first. 

Fun Fact: Did you know? The longest cricket match in history (England v. South Africa, 1939) spanned 10 days.

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Comcast Positioned to Take Down Sky, Could Drop Pursuit of Fox Assets (including 22 RSNs)

SKY

21st Century Fox (FOXA) raised its bid 30% (to +/- $18.50/share) for Sky PLC (SKYAY) on Wednesday, before Comcast (CMCSA) improved its cash offer for the European cable provider by 18% (to +/- $19.50/share); a 5% premium to the latest FOXA offer. Comcast’s offer was reportedly “recommended by Sky’s independent directors” and the company is said to have “earmarked funds to fulfill the terms of the deal”; the company hopes to complete the acquisition by October, having already received regulatory approval (had been an issue with Fox’s Dec. ‘16 bid) from the EU, Austria, Germany, Italy, and Jersey. The WSJ indicated that if Comcast were to take down Sky, the company could drop its pursuit of Fox’s film and TV assets; FOXA’s existing 39% stake in SKYAY has been a target in that deal.

Howie Long-Short: The Walt Disney Company is considered the front-runner for the FOXA properties having submitted a $71.3 billion offer; obtaining full control of SKYAY is critical to completing that transaction, which explains FOXA’s interest in the British television group.

As for Comcast, SKYAY could bring them both the original content and distribution (satellite & broadband) capabilities that would make the alliance “a mini Comcast-NBCU” and give CMCSA the international expansion it seeks as the company looks to keep up with Amazon and Netflix.

I asked Dan Cohen, Octagon SVP, Global Media Rights Consulting Division which deal (Sky or Fox assets) would best position Comcast in the sports media sector?

Dan: Sky is the stronger sports specific acquisition with a robust portfolio not only in the UK but other significant European markets. The crown jewel is obviously Premier League, but F1, Cricket and Golf are significant as well. Sky Italia offer up premium content after just renewing Serie A rights in Italy and Sky is a player in Ireland Spain, Germany and Austria.

Editor Note: Fox assets include Star India and Fox International channels, but no domestic rights. Comcast would also be divesting the 22 RSNs to avoid anti-trust concerns.

Howie: What are the 22 RSNs worth?

Dan: I wouldn’t be surprised if they could fetch as much as $28 billion. Either winner (Comcast or Disney) will be well positioned to reap billions from the sale. The capital earned from the RSN divestiture can help offset the purchase price or be applied to aggressively pursuing even more premium sports content.

FOXA shareholders were less than pleased with Wednesday’s developments, shares declined -4% on the day closing at $47.79.

Fan Marino: Speaking of 21st Century Fox, it’s being reported that despite ad revenue increasing from 4 years ago, the company is going to lose money on the ’18 World Cup. Simply put, the company overestimated (by 7-10%) the number of viewers they expected to tune-in (and guaranteed in ad deals) and are now being forced to offer “make goods” (i.e. additional air time) to advertisers. Interestingly, Telemundo won’t post a profit either; that’s surprising if only because it set network ratings records (including 125 million live streams) throughout the tournament.

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Comcast Preparing to Divest 22 Fox RSNs, To Submit 2nd All-Cash Bid by July 27th  

Comcast

Comcast (CMCSA) is reportedly lining up buyers for 21st Century Fox’s (FOXA) regional sports networks to alleviate anti-trust concerns, as it prepares a bid that would be favorable to The Walt Disney Company’s (DIS) $71 billion dollar offer (cash and stock) for FOXA film & TV assets. CMCSA is open to divesting all 22 RSNs, but believes just 8 overlap with the existing Comcast sports footprint. Reuters is reporting that the company has held conversations with publicly-traded buyout firms Apollo Global Management (APO) and Blackstone Group (BX). Just 2 weeks ago, the U.S. Department of Justice approved DIS’ bid after reaching a settlement with the mouse house to rid itself of the regional sports networks.

Howie Long-Short: It’s been assumed that the RSNs will fetch $20 billion+ (Comcast’s first bid placed a $24 billion valuation on them), so selling them off will help Comcast coffers as the company prepares to submit a 2nd all-cash bid (no dollar amounts given). FOXA shareholders are scheduled to vote on the DIS bid on July 27th, Comcast will submit their bid prior.

Rumors of P.E. firms taking down the RSNs is relatively surprising as most of the discussions surrounding potential landing spots having focused on telecom and media companies. Everyone from Amazon (AMZN) and YouTube (GOOGL) to AT&T (T) and Dish Network (DISH) has been mentioned.

I asked T.K. Gore, sports media consultant, advisor and professor, for his thoughts on who lands the RSNs?

T.K.: The RSN world is a tricky business and experience — coupled with deep pockets — matters. Look for groups like Liberty Media and AT&T to get involved given their experiences.

MSG is among the companies that has been associated with having interest in the regional networks. James Dolan has said that he’d be interested in acquiring the assets “at the right price”, noting they’re highly profitable now but a “slow, declining revenue stream.”

Fan Marino: The 22 RSNs collectively control exclusive broadcast rights to 44 NFL, NBA, MLB & NHL franchises, including teams in Detroit, Southern California, Dallas, Cleveland and Miami. The YES Network is the most valuable of the lot, worth an estimated $4 billion; the Yankees are likely to re-acquire that network.

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SmackDown Live Moving to Fox Network Television, WWE Signs $1 Billion Agreement

SmackDown

Fox Sports has confirmed reports that the Fox broadcast network (FOXA) will be the home of WWE SmackDown Live, effective Friday October 4, 2019. The 5-year deal, worth an estimated +/- $200 million annually, gives Fox exclusive rights to the “2nd-longest running weekly episodic cable television show in U.S. prime time history” (Monday Night RAW is 1st). By signing with Fox, the show will move from cable to network television; though it will air on Friday evenings, the least watched television night. In related news, USA Network has announced that is has renewed its contract with the WWE to retain the exclusive broadcast rights to Monday Night RAW.

Howie Long-Short: This isn’t news as much as it is confirmation for JWS readers, as we first wrote of the deals back on May 22nd. Come 2019, Monday Night RAW and SmackDown Live will generate 3.6x ($468 million/year) what the company currently brings in ($130 million) for its 2-weekly prime-time shows. WWE isn’t done yet either, broadcast deals in 5 of their 6 largest international markets are also coming up for renegotiation. WWE now projects the company’s 7 largest TV deals in aggregate will grow from $235 million in 2018 to an average of $542 million by 2021.

The formal announcement of the Monday Night RAW and SmackDown Live deals sent WWE shares up +9.5% last week ($72.82). WWE is up +67% since the news first broke in mid-May and has grown +260% over the last 12 months. Of course, WWE is having success on both the television and streaming fronts; reporting WWE Network (OTT platform) paid subs grew 5% to 1.56 million in Q1 ‘18.

Fan Marino: Vince McMahon has committed to spending $500 million, not the $100 million originally reported, on the XFL over the first 3 years. Players (40 man rosters, +/- $75,000 salaries), coaches and a “broad-based insurance plan” (cost min. $10 million/year) are expected to be the biggest expenses. The league is scheduled to debut in February 2020. While $500 million will give the league some runway, I simply don’t think the competition level will be good enough to give it staying power; and if a wave of top high school prospects decided to forego college to pursue pro careers in the XFL, the NFL would simply renegotiate their CBA to enable HS prospects to enter the 2021 draft. The current NFL CBA expires following the 2020 season. It’s worth noting that WWE shares are up 117% since Vince sold $100 million worth in January, money he’s using to fund the startup league.

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Disney Agrees to Divest 22 Regional Sports Networks

Disney200x200

The Department of Justice has approved The Walt Disney Company’s (DIS) $71.3 billion ($38/share, increased bid from $52.4 billion, includes +/- 50% in cash) acquisition of 21st Century Fox (FOXA) television and film assets, after reaching a settlement with DIS that calls for the company to divest FOXA’s 22 regional sports networks. U.S. A.G. (Anti-Trust Division) Makan Delrahim, concerned DIS’ control of the RSNs would create a potential monopoly, said that the settlement ensures “sports programming competition is preserved in the local markets where Disney and Fox compete for cable and satellite distribution.” The settlement, which requires DIS to divest the RSNs within 90 days of closing, requires approval from a judge; but that is a formality. DISintends on pursuing a 3rd party buyer for the RSNs, as opposed to submitting a new offer; FOXA is not thought to be interested in retaining the assets.

Howie Long-Short: DOJ approval gives DIS an advantage over Comcast (CMCSA) in the competition for the Murdoch empire, just two weeks after Comcast submitted an all-cash bid worth $65 billion ($35/share). While the approval alone won’t win DIS the assets (Comcast is expected to submit a counter offer), it won’t hurt considering it’s been thought the FOXA board has long preferred to sell the assets to DIS in the belief the Comcast bid is bound to face anti-trust concerns. That’s debatable. CMCSA would also divest the RSNs and FOXA’s stake in Hulu is really the only asset that might draw anti-trust concerns; and that doesn’t appear to be a major hurdle. It’s been thought FOXA assets could draw upwards of $43/share.

It should be noted that if the DIS deal goes through as is, FOXA shareholders would own 19% of the joint company. FOXA shares are up +11% (to $49.79) since DIS submitted their latest offer on June 20thDIS hasn’t fared as well, the stock is down -1.25% (to $104.77) over that same period.

Fan Marino: While the Yankees are likely to repurchase YES Network, that still leaves 21 RSNs and a lot of regional sports broadcast rights for taking. Sure, it’s possible that FAANG will pursue exclusive broadcast rights, I would bet on an established linear player making a play to acquire the 5th most important channel on a subscriber’s cable package. CBS (think: CBS Sports HQ), Turner Sports (T, B/R Live) and Discovery Communications (DISCA, which has made a significant push for rights in Europe) are all possible landing spots.

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Yankees Seek to Re-Acquire YES Network, Hold Buyback Option

YES_Network_logo

The New York Yankees have expressed interested in re-acquiring the 80% of the YES Network controlled by 21st Century Fox (FOXA), if FOXA is to proceed with the sale of its film and TV assets (including 22 RSNs). The team reportedly holds a buyback option in the event the network (the most valued/viewed RSN among FOXA lot) goes up for sale. Last week, we wrote that Comcast (CMCSA) had submitted a $65 billion all-cash offer for 21st Century Fox’s (FOXA) assets that trumped the $52.4 billion all-stock offer that The Walt Disney Company (DIS) placed in December; DIS is expected to submit a counter bid. Yankee Global Enterprises, the holding company that owns the baseball club and NYCFC, controls the remaining 20% of YES.

Howie Long-ShortFOXA initially purchased a 49% stake in the YES Network for $1.862 billion in 2012. In 2014, the company acquired an additional 31% at roughly the same $3.8 billion valuation. The 1st place Yankees are drawing the network’s highest ratings since ‘12 and YES also controls the rights to broadcast both Brooklyn Nets and NYCFC games, so it’s certainly not unreasonable to expect FOXA to sell the asset at a valuation north of $4 billion. This means the team would be re-acquiring the network at a loss. That may not be of concern for the franchise though, as they likely value the ability to own/distribute their content with the recent proliferation of direct to consumer platforms/services.

According to Moody’s Investor Service, if Comcast were to acquire FOXA assets the combined entity would carry +/- $170 billion in pro-forma debt; more than every company in the world not named AT&T/Time Warner (which just completed a $85 billion merger).

Fan Marino: Back in April, Forbes released its rankings of the most valuable Major League Baseball teams. The Yankees topped the list with a $4 billion valuation, making them the 2nd most valuable team in all of sports; behind only the Dallas Cowboys ($4.2 billion). The team generated $619 million in revenue last year, 96.5% more than the league average ($315 million). Forbes has the NYY valued at +/- 6.5x revenue, slightly higher than what the Houston Rockets sold for in 2017; for comparison purposes, the Carolina Panthers recently sold for less than 6x revenue. I continue to maintain that David Tepper got a good deal.

The Yankees have signed the PBP voice of the YES Network (for Yankee games) to a 3-year extension (network option for 2 more years) worth more than $1 million/year. The deal makes Michael Kay the highest paid local broadcaster in MLB. Kay takes home a higher annual salary than some of the team’s biggest stars; Luis Severino, Gary Sanchez and Aaron Judge will make $604K, $620K and $622K respectively this season.

Fun Fact: The value of the NYY has compounded 15% annually since George Steinbrenner group bought the team for $8.8 million in 1973.

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Comcast Submits $65 Billion All-Cash Offer for Fox Film/TV Assets, Including 22 RSNs

CMCSA

Just 24 hours after the announcement that a federal judge had approved AT&T’s $85 billion takeover of Time Warner, it was reported that Comcast (CMCSA) submitted a $65 billion all-cash bid for 21st Century Fox’s (FOXA) film and TV assets (including 22 RSNs); trumping the $52.4 billion all-stock offer that The Walt Disney Company (DIS) had placed in December. Comcast’s interest largely surrounds FOXA’s 30% stake in Hulu, as the acquisition would give CMCSA controlling interest in the OTT service (already own 30%). NBCUniversal CEO Steve Burke stated, “we would be very very interested in growing that business.” In fact, it’s possible that if Comcast’s offer were to be selected, the company wouldn’t even end up controlling the RSNs; language within their bid indicated the company would match any regulatory commitments made by DIS; including to “divest… any of the RSNs.”

Howie Long-Short: FOXA shares rose +7.7% (to $43.66) on Wednesday following report of the Comcast bid. DIS closed up +2% (to $106.30), while CMCSA shares remained flat ($32.32) as investors expressed skepticism about the company increasing their debt level to 4x earnings; necessary to finance both the Fox deal and their purchase of Sky PLC (SKYAY).

It’s certainly worth noting that Comcast’s bid places a +/- $24 billion valuation on the 22 RSNs.

SKYAY is another name to watch. If DIS counters CMCSA’s bid, it’s possible that Fox will up its bid (currently $14.38/share) for the European pay-tv provider. Fox currently owns 39% of the company and was planning to acquire the remaining 61%, with the intention of flipping the asset as part of the proposed $52.4 billion transaction. Should a bidding war arise, John Janedis, an analyst at Jefferies LLC said it wouldn’t be unreasonable for the winning bid to reach $80 billion. For reference purposes, Comcast bid $16.72/share for 61% of Sky. The domestic cable/internet provider wants the asset (and Star – India) to expand its business overseas.

Fan Marino: AT&T’s (T) acquisition of Time Warner (TWX) includes several sports-related properties including Turner Sports, Bleacher Report and the newly launched Bleacher Report Live service; an untethered (i.e. no subscription needed) premium sports streaming service. T also takes controlling interest in the country’s largest pay television distributor, DirectTV. TWX shares rose 2% on Wednesday to $97.95, while T shares declined 6.2% (to $32.22) on the news.

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College Rugby Sevens Make ESPN Debut, Pac-12 Goes for 6th Straight Title

Rugby

Niche college sports, particularly non-varsity club sports, have historically fallen out of the purview of athletics sports rights holders and into a gray area of content replete with official logos and representation, but lacking mainstream coverage. That trend will end this weekend as the fastest growing sport in the country makes its way to ESPN linear and ESPN digital platforms for the first time; College Rugby Sevens. Army, Navy, Air Force and Notre Dame will headline The Penn Mutual CRC field, as 24 teams compete for a National Championship. 30,000 people are expected to attend the two-day event at Talen Energy Stadium (Philadelphia).

Howie Long-Short: Disney (DIS) reported fiscal Q2 ’18 profits increased 23% YoY (to $2.94 billion), with Black Panther ($1.3 billion in box office sales) and theme parks (+13% to $4.88 billion) spearheading revenue growth (+9% to $14.5 billion). Operating income for the company’s cable networks businesses (including ESPN) declined 4% YoY to $1.73 billion. Brook Barnes at the NYT attributed the decline to “higher costs – notably spending on unprofitable streaming services like ESPN+ and hulu – and subscriber declines at ESPN.” ESPN would not disclose the number of subscribers who have signed up for the ESPN+ service, but CEO Bob Iger said “a number of people have signed up for the trial and our conversion rates have been good so far”; adding “basically, I give it a so far, so good.”

21st Century Fox Shareholders (FOXA) have scheduled a date (July 10) to vote on the proposed $52.4 billion asset sale (including regional sports networks) to The Walt Disney Corporation (DIS). Comcast, which said it was preparing a cash offer (as opposed to DIS’ all-stock offer) for the FOXA film studios/cable networks/entertainment businesses, has +/- 6 weeks remaining to submit the bid. Should DIS lose out on the RSNs that are expected to boost the ESPN+ offering, Bob Iger won’t panic; he says the platform is “not reliant at all on the assets”. That’s true right now, as all the local MLB, NBA and NHL broadcast rights are tied up under contract; but, as those deals begin to expire, DIS will want to add the 5,500 games they currently carry to ESPN+. As I’ve previously explained, when a fan in St. Louis can get all the Cardinals and Blues games for $4.99/mo., they’ll subscribe to ESPN+.

Fan Marino: The Pac-12 has dominated the collegiate rugby landscape over the last eight years. The conference has won six of the last eight CRC Championships, with California winning the last five years (Utah won in ’10). This year, Arizona and UCLA are among the tournament’s favorites. Bill Walton would like to remind you that it is, in fact, the “Conference of Champions”.

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WWE Gets $1 Billion for SmackDown Live, Shares Up 33% in Last Week

WWE_on_white_870x489

21st Century Fox (FOXA) has agreed to a 5-year deal worth more than $1 billion for exclusive broadcast rights to WWE’s SmackDown Live show. Effective October 2019, the 6th highest rated original show on cable television will move from USA Network to FOX’s over-the-air TV network. FOXA plans to move the Tuesday night staple to Friday evenings and will continue to broadcast the 2-hour show live. WWE reportedly chose the FOXA bid despite a larger offer, as “new Fox” committed to promoting the show during tentpole sports broadcasts (think: NFL on Sun, NFL on Thurs, MLB, CFB). NBCUniversal, the show’s current rights holder, declined their right to first refusal to negotiate a new contract after deciding to retain WWE Monday Night RAW with a deal worth $240 million annually; that show will continue to air on USA Network. Combined the new deals are worth +/- $445 million annually, a +/- 145% increase on the $180 million/year that the company currently brings in for the 2 prime-time shows.

Howie Long-Short: We noted in yesterday’s newsletter that Fox was among the favorites to land the WWE franchise and should it do so, was likely to air SmackDown Live on its Big 4 network; so, we weren’t exactly shocked by Monday’s news. The deal’s total value had us doing a double-take though, as earlier reports pegged the show’s value at +/-$110 million/year (up from $30 million/year on deal signed in 2010). WWE shares rose again on Monday, closing +12.5% (at $57.86); the stock is up 33% since last Wednesday’s close (RAW deal broke Thurs.) and a whopping 192% over the last 12 months (from $19.80).

The next shoe to drop is likely to be UFC’s linear cable broadcast package, with 20+ live events. FOXA currently pays $165 million annually for exclusive broadcast rights, but that deal expires in December. While earlier reports indicated that FOXA would let the UFC walk if it successfully acquired WWE rights, it now appears as though the company wants to retain the rights and is willing pay an extra $10 million/year ($175 million) to do so. Of course, it’s no guarantee that will be enough, as industry experts have been expecting the UFC’s deal to fetch $200 million+.

Fan Marino: There is the possibility (if not high probability) that SmackDown Live will outdraw RAW during the deal’s duration. While RAW currently draws 3 million viewers (compared to SmackDown Live’s 2.59 million), SmackDown Live’s pending move to FOX will put the show in 30 million additional homes on a night with far less competition in terms of programming.

For those who don’t follow the WWE, SmackDown Live was historically an inferior product to RAW (even taped at one point). However, a 2016 draft split the company’s talent roster, requiring fans to watch both shows to see all their favorite superstars. Should SmackDown Live begin to outdraw RAW (as we expect), look for some of the promotion’s biggest names (think: Roman Reigns, Ronda Rousey) to join Miz and AJ Styles on the SmackDown Live roster; the WWE will want the opportunity to put forward its best product on its biggest stage (i.e. broadcast television).

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