Shares of the Twenty First Century Fox Corporation rose 8% on Wednesday. This shows approval for AT&T’s purchase of the controlling share in the Time Warner Company. This comes after increased speculation that Comcast is going to buy the assets of the majority of media companies. Their next target seems to be the Fox conglomerate.
Comcast and AT&T
A proposal from Comcast is expected later in the day. Industry experts expect this proposal to prevail over the $52 billion deal that Walt Disney offered for Fox.
On Tuesday, a federal judge approved the purchase of $85 billion that AT&T made for Time Warner. This cleared the path for more deals similar to this one in the media industry.
Shares of other media and telecom companies, such as Discovery, CBS, and Sprint were all up around 4% in premarket trading.
Enormous Debt
Simon Flannery is an analyst at Morgan Stanley. He said the things that the ruling companies do are relevant for other potential deals.
However, the stock of AT&T was down by almost 4%. At least one analyst is concerned about the company’s debt that it would take on as a part of the deal.
