Fox Corp shares up 4.5% premarket after WSJ reports co's CEO eyes stake in TikTok

Fox Corp shares up 4.5% premarket after WSJ reports co's CEO eyes stake in TikTok

Fox Corp (FOX) shares rose 4.5% premarket on September 12, 2025, following a Wall Street Journal report that the company's CEO, Lachlan Murdoch, is considering a financial stake in TikTok's U.S. operations. The report suggests that Lachlan Murdoch, along with his father Rupert Murdoch, is contemplating a minor ownership position in TikTok's U.S. business .

Fox Corp, primarily operating in cable networks and television, has demonstrated robust financial health. The company's trailing twelve months' revenue stands at $16.3 billion, with a three-year growth rate of 13% . The operating margin is 19.81%, and the net margin is 13.88%, reflecting strong operational efficiency . Fox Corp's Altman Z-Score of 3.17 indicates strong financial stability .

The company's strategic focus on live news and sports content has positioned it well in the evolving media landscape. Fox Corp's EBITDA margin of 23.61% and return on equity of 19.86% underscore its operational efficiency . The company's valuation metrics indicate a mixed sentiment, with a P/E ratio of 12.35, a P/S ratio of 1.72, and a P/B ratio of 2.26 .

However, sector-specific risks such as regulatory changes in media and evolving consumer preferences pose challenges for Fox Corp . The company's beta of 0.71 indicates lower volatility compared to the market, providing some stability against market fluctuations .

The potential investment in TikTok's U.S. operations could signal a strategic expansion into digital media for Fox Corp. The company's strong financial health and operational efficiency position it well to consider such a move. Investors should closely monitor the developments and assess the potential impact on Fox Corp's financial performance.