Moneymaker of the Murdoch Empire calls Fox News, a "Free Cash Flow Distributor"

OPINION: The media coverage of the Hollywood specialist press last week marked the conclusion of one of the most important and significant agreements in the history of the media.

The sale by Rupert Murdoch of 70 billion US dollars (72 billion New Zealand dollars) from the 21st Century Fox film studios production and other badets to the Disney entertainment giant has finally crossed the line. ;arrival.

And the dominant story last week was that it represented the end of one of the biggest corporate success stories in showbusiness history.

Yet while Tinseltown may be nostalgic about the Murdochs at the moment, Wall Street's view is that the story of the Australian media dynasty is far from over.

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Rupert's eldest son, Lachlan, officially took over Fox Corp last week, which will house TV badets that the family has not sold to Disney. This is a more formidable operation than some might think, generating $ 11 billion in revenue this year and a profit of $ 1.5 billion. And it is clear that he intends to make it even bigger.

The question is to know if he can withdraw that.

By the way, do not be surprised if the interest of the press for the next generation of the Murdoch family remains high for a while. The Disney deal allowed each of Rupert's six children to be billionaire, which has led many people to wonder how this could alter family dynamics.

And The New York TimesAccording to sources, a major family magazine is in preparation and titled "Succession" – a nod to the HBO drama of the same name, based itself at least in part on the Murdochs.

The badet portfolio of the new Fox Corp. is led by Fox News, the controversial and listed news channel on cable television that dominates the politics of the American right wing and is favored by the US. current president of the United States, Donald Trump.

It also includes the free Fox network, which owns and operates 28 US TV channels, and controls rights to lucrative content, including NFL games and hit series like The Simpsons.

On Friday, Credit Suisse media badyst Doug Mitchelson advised his clients to buy Fox shares, which he described as a "free cash flow machine", with a content portfolio at the Netflix test.

Fox Corp will be the largest sports and news media company [in the US] reduce the potential for digital disintermediation through streaming challengers only, "he wrote.

(By the way, this group of streaming challengers could be even more crowded this week, and Apple is expected to announce a new service at an event in California on Tuesday).

Credit Suisse is not the only Wall Street broker to be optimistic about the new Fox business. Jessica Reif Ehrlich, of Bank of America, said the company was "well positioned to outperform" because of its "proven brands" and its "concentration in sustainable content and live sports". In addition, Buckingham Research's Matthew Harrigan also called the purchase title, describing Fox as a "differentiated game about live sports events."

Although he owns the most-rated cable TV channel in the US, which has the ear of the world's free leader, Lachlan positions Fox as a startup. Last week, at a town hall meeting, all employees were given the corporate title, and their new CEO emphasized the need to be bold and take risks.

Mitchelson says Fox is perfectly positioned to be a buyer or seller in media consolidation. "In the longer term, we see the likelihood that Fox will become part of a larger entity that would benefit from its sporting reach and its news and distribution strength," he writes.

News Corp., which owns a wide range of badets in Australia, including newspapers and 65 percent of Foxtel, could possibly relate to the other Murdoch Group company, which remains focused on publishing, remains an open question.

Yet with News Corp's hands full at the moment he's trying to straighten out Foxtel and the small regulatory war deal with Google and Facebook going on, that sort of deal seems less and less likely.

Lachlan positions Fox for growth. However, the real test of his courage in the new business may lie in business transactions. This is an area where his record is decidedly mixed. And an area where it will be difficult to surpbad dad.