Steven Cahall: Last News

Todd Spangler NY Digital Editor Paramount Global‘s debt rating was cut to junk status by credit-rating agency S&P Global, which cited the media conglomerate’s ongoing challenges with free cash flow generation relative to its debt. S&P on Wednesday said it expects Paramount Global’s free operating cash flow-to-debt will remain “well below” 10% through 2025, and that adjusted leverage (debt-to-equity ratio) will stay above 3.5 times through then.

The fate of ESPN, Disney’s prize asset and a reliable generator of cash flow even in uncertain times, remains the subject of vigorous debate in industry and finance circles.

Fox Corp.'s stock earned an upgrade on Wednesday thanks to the sports rights cost "clarity" provided by the recent NFL rights renewal andits role as "a potential participant in media M&A." Wells Fargo analyst Steven Cahall upgradedthe shares of Fox, led by CEO Lachlan Murdoch, from "underweight" to "equal weight" and his price target by $14 to $41 writing in a report: "We've historically been bearish on sports as rights tend to grow in excess of linear revenues, and Fox has been the media stock with the most sports leverage." But he highlighted that "we now see the new NFL deal as a clearing event with our out-year TV estimates moving up significantly," adding that "from here, M&A could be an opportunity." Plus, he noted thatsports betting