All three are generally interested in the same businesses -- U.S. antitrust rules prohibit a single company from owning more than one broadcast network, which means that those assets wouldn't be part of a deal for Disney, parent of ABC, or NBC-owner Comcast.
As the value of content continues to climb, media companies are becoming more and more willing to shell out big bucks for content libraries.
In the case of Comcast, buying most of Fox's assets would also give the firm majority control of the Hulu streaming video service, an asset that's become increasingly important in the age of "cord cutting".
While talks are still ongoing, they could have even more significant upside implications right now for Comcast shareholders. That's because shares are already teetering on the verge of breakout territory. A deal could be the catalyst that triggers a more prolonged move in Comcast.
To figure out how to trade it from here, we're turning to the chart for a technical look:
This has been a lackluster year for shares of Comcast. While the broad market has surged more than 15% higher year-to-date, Comcast has only managed to deliver about a third of that price move, swinging in a wide range in recent months.
Now, though, a bullish reversal pattern is signaling the potential for a higher move in Comcast.
An inverse head-and-shoulders pattern is in play; it's a reversal setup that indicates exhaustion among sellers. The pattern is formed by two swing lows that bottom out at approximately the same level (the shoulders), separated by a lower low (the head). The buy signal comes on a breakout through Comcast's neckline, currently at the $37.50 level.
Simply put, if Comcast can push above $37.50 here, we've got a pretty clear indication that buyers are back in control of shares.
Price momentum, measured by Comcast's 14-day RSI at the top of the chart, adds some extra confidence to the upside move once the breakout occurs. Momentum has been making higher lows of its own over the course of CMCSA's inverse head-and-shoulders pattern, signaling that buying pressure has been building as the pattern progressed.
Comcast isn't without barriers to the upside over the longer term -- prior highs around $42 could later be a challenging level for buyers to regain control above. But in the meantime, investors should keep a close eye on Comcast near $37.50, especially as the Fox news unfolds.
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