Potential Loss of Fox Channels for Millions of YouTube TV Subscribers Due to Dispute Over Carriage Fees and Increasing Streaming Expenses
YouTube TV's Warning: YouTube TV has alerted subscribers that they may lose access to Fox channels if a new carriage agreement is not reached by August 27, with potential impacts on Fox Sports, Business, and News.
Negotiation Standoff: The negotiations are complicated by Fox's demand for higher payments than those received by similar content providers, leading to tensions between the two companies.
Fox's Response: Fox has accused Google of exploiting its market power during negotiations and has warned subscribers about the risk of losing access to its channels unless meaningful discussions occur soon.
Alphabet's Financial Strength: Despite the ongoing dispute, Alphabet Inc. reported strong financial results for Q2, with significant revenue growth across its various services, maintaining a solid cash position.
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- Acquisition Agreement: Texas Instruments is set to acquire Silicon Labs for $231 per share in an all-cash transaction valued at $7.5 billion, which not only boosts Silicon Labs' market valuation but also enhances Texas Instruments' competitive edge in the semiconductor sector.
- Positive Market Reaction: Following the acquisition announcement, Silicon Labs' stock surged by 49%, indicating strong investor confidence in the deal and reflecting optimistic expectations for consolidation within the semiconductor industry.
- Strong Earnings Performance: Silicon Labs reported an adjusted EPS of 56 cents for Q4, slightly above the consensus estimate of 55 cents, demonstrating stable financial performance that enhances the attractiveness of the acquisition.
- Industry Consolidation Trend: This acquisition represents a strategic move for Texas Instruments to expand its product line and signifies an acceleration in semiconductor industry consolidation, potentially triggering more similar deals that could reshape the market landscape.
- Record Ad Revenue: Fox Corporation achieved record-breaking advertising revenue in Q2, particularly from Major League Baseball postseason and NFL events, reflecting a robust recovery in the advertising market and reinforcing the company's leadership position in the media industry.
- Strong Tubi Performance: Tubi delivered a 19% revenue growth in the quarter, with total view time up 27% year-over-year, achieving EBITDA profitability for the second consecutive quarter, indicating its growing competitiveness and appeal in the streaming market, which is expected to continue driving overall company performance.
- FOX One Subscriber Growth: FOX One's early user growth exceeded expectations, with management projecting low to mid-single-digit millions of subscribers over the next 3 to 4 years, demonstrating the effectiveness of the company's strategic positioning in digital platforms and enhancing confidence in future revenue growth.
- Financial Stability: Fox Corporation reported total revenues of $5.18 billion in Q2, a 2% increase year-over-year, and while adjusted EBITDA fell to $692 million compared to the prior year, the company maintained strong financial performance, showcasing effective strategies in cost management and revenue growth.
- Revenue Growth: Fox Corp's fiscal Q2 2026 revenue increased by 2% year-over-year to $5.18 billion, surpassing Wall Street's consensus estimate of $5.06 billion, indicating the company's stable performance in the media sector.
- Net Income Performance: Adjusted net income reached $360 million, or 82 cents per share, which, despite a decline from $442 million and 96 cents per share a year earlier, exceeded analysts' expectations of 50 cents, reflecting the company's resilience in profitability.
- Advertising Revenue Boost: Advertising revenue advanced 1.4% to $2.46 billion, primarily driven by higher pricing in sports and news, digital growth from the Tubi AVOD service, and additional MLB postseason games, although offset by lower political advertising revenues.
- Stock Buyback Program: Fox repurchased approximately $750 million of Class A common stock and $800 million of Class B common stock during the quarter, demonstrating confidence in its stock value while also declaring a dividend of 28 cents per share to enhance shareholder returns.
- Revenue Growth: Fox's total revenue for Q2 reached $5.18 billion, a 2% increase year-over-year, surpassing the market expectation of $5.05 billion, indicating strong momentum in advertising and distribution, particularly in sports and news pricing.
- Ad Revenue Increase: Advertising revenue rose by 1.4% year-over-year, driven by continued digital growth from the Tubi AVOD service and the impact of additional MLB postseason games, reflecting positive progress in the company's digital transformation efforts.
- Net Income Performance: Net income attributable to shareholders was $229 million, or $0.52 per share, lower than last year's $373 million and $0.81 per share; however, adjusted earnings of $0.82 per share exceeded Wall Street's expectation of $0.52, demonstrating resilience in profitability.
- Stock Buyback Program: During the quarter, Fox repurchased $750 million of Class A common stock and $800 million of Class B common stock, indicating the company's confidence in its stock value and potentially enhancing shareholder returns.
- Dividend Declaration: Fox has declared a semi-annual dividend of $0.28 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability, which is likely to attract more investor interest.
- Yield Metrics: The forward yield stands at 0.89%, reflecting the company's appeal in the current market environment, potentially boosting shareholder confidence and stabilizing the stock price.
- Payment Schedule: The dividend is payable on March 25, with a record date of March 4 and an ex-dividend date also on March 4, providing investors with a clear timeline that aids in financial planning.
- Future Growth Potential: Fox is poised to execute an option to acquire a significant stake in FanDuel by 2026, and despite the associated risks, this strategic move could offer continued growth opportunities, further solidifying its position in the sports betting market.
- Strong Earnings Performance: Fox's Q2 Non-GAAP EPS of $0.82 beats expectations by $0.28, indicating a significant improvement in profitability that boosts investor confidence.
- Stable Revenue Growth: The company reported quarterly revenue of $5.18 billion, a 2% year-over-year increase that exceeds market expectations by $150 million, primarily driven by a 5% growth in the Cable Network Programming segment, showcasing the resilience of its core business.
- Adjusted EBITDA Decline: Despite revenue growth, adjusted EBITDA fell to $692 million from $781 million in the prior year, reflecting potential cost pressures that may impact profitability moving forward.
- Dividend Distribution Plan: The company declared a dividend of $0.28 per Class A and Class B share, payable on March 25, 2026, demonstrating a commitment to shareholder returns and enhancing market perceptions of its long-term investment value.










