Entertainment and news leader Fox (FOXA) had a fantastic weekend with the Super Bowl, but it is scarcely resting on those laurels. In fact, Fox has already made a whole new move, buying Red Seat Ventures. Investors were less than pleased, however, and shares slipped fractionally in Monday afternoon’s trading.
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Red Seat Ventures is a digital media company that focuses on video podcasts, and actually is the current home of some former Fox News personalities. Both Megyn Kelly and Tucker Carlson are with Red Seat Ventures right now, so, basically, they are back to being with Fox News once more, in a roundabout fashion.
Fox wants Red Seat in order to set up a better connection with the youth market, as well as the mounting podcast market, which is representing a growing future in media. No terms of the deal were disclosed, reports noted, and Red Seat will be incorporated into the Tubi Media Group, home of the Tubi free ad-supported television (FAST) streaming service.
A Big Weekend
Fox launches this acquisition fresh off the win that was Super Bowl weekend, in which Tubi got to show off its chops as a streaming service by airing the event on the platform. With Tubi already poised to clear the $1 billion mark for revenue this year, Tubi is already popular. But by bringing the Super Bowl, it demonstrates just how much traffic it can handle and draws more interest from potential viewers.
Further, Fox also lost a major figure in its sportscasting, as reports noted that Terry Bradshaw will be retiring from NFL Fox Sunday. Bradshaw still has two years left on his contract, but he means to keep going until his 80th birthday, which, interestingly, will take place during Super Bowl 63 in 2029, reports note.
Is FOXA a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on FOXA stock based on seven Buys and eight Holds assigned in the past three months, as indicated by the graphic below. After a 75.91% rally in its share price over the past year, the average FOXA price target of $55.71 per share implies 5.71% upside potential.
