FOXA, CBS, DISCA, TWX, VIAB, DIS: Focus on M&A -- Pivotal Research

In this note we are slightly modifying our financial models for video-centric media companies under our coverage. Weak fundamentals are likely to be overshadowed by a focus among investors around M&A in light of reports about Scripps discussions to combine with either of Viacom or Discovery. Price targets and recommendations are unchanged, with a Buy rating on 21st Century Fox, Hold ratings on CBS, Discovery, Time Warner and Viacom and a Sell rating on Disney.