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Rupert Murdoch, Fox: Buy Madison Square Garden and N.Y. Yankees

It's easy to connect the dots.

However, I expect Murdoch -- if nothing else, he's a true maverick -- to push the envelope harder. He might go so far as to test regulatory waters.

He's no dummy. He sees what Rogers and Bell do in Canada -- the companies have a virtual monopoly on sports and entertainment throughout the nation -- and, while he knows that level of consolidation would never fly in a tight U.S. regulatory environment, News Corp can do more. It can build an empire to not only challenge, but knock off ESPN.

He did it in cable news with Fox, absolutely embarrassing CNN. Sports, it's ripe for the taking.

With that in mind, keep an eye on Madison Square Garden (MSG - Get Report). I covered the company's impressive regional holdings, which include the New York Knicks, the New York Rangers, the MSG family of cable networks and Madison Square Garden Arena here in Knicks Win, Rangers Lose: Either Way MSG Remains a Buy.

Since that article, the stock is up about 15% and MSG agreed to acquire the Forum, the venue where the Lakers and Kings used to play in Southern California.

George Steinbrenner is dead. You know what happens when the family takes over.

They let Rupert Murdoch in the door. He will take advantage of the opening just like I'm-not-tall,-but-I'm-not-small former New York Giants running back Joe Morris did when he saw gaping holes in defensive lines.

Step 1: Get in that door with a stake in YES.

Step 2: Go hard at MSG and spin off some of the assets -- maybe the Rangers -- that would create eventual regulatory headaches.

Step 3: Come back to the Steinbrenners and pitch the potential synergies inherent in having YES, MSG and the New York Yankees under the same roof with Fox's national and regional sports powerhouses.

It's a no-brainer.

Rocco Pendola is TheStreet's Director of Social Media. Pendola's daily contributions to TheStreet frequently appear on CNBC and at various top online properties, such as Forbes.
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