When a company continues to expand its reach through traditional methods of organic growth, such as a growth-by-acquisition strategy, the bigger picture tends to come into focus. For 21st Century Fox (FOXA), it's recently announced acquisition of KBCB-TV in Bellingham, Washington (for roughly $10 million) not only expands its reach in the Pacific Northwest, but also allows it to broadcast Seattle Seahawks games. With that said, I not only wanted to highlight the transaction but also note a number of reasons as to why I'm staying bullish on shares of Twenty-First Century Fox.

Company Overview

With its business based in New York City, Twenty-First Century Fox, Inc. operates as a diversified media and entertainment company worldwide. It operates through a number of segments that include Cable Network Programming, Television, Filmed Entertainment, and Direct Broadcast Satellite Television.

Recent Performance & Trend Behavior

As of Wednesday's close, shares of FOXA, which have fallen just over 2% year-to-date, possessed a market cap of $73.62 billion, a P/E ratio of 20.43, and an annualized dividend yield of 0.73% ($0.25). Based on their closing price of $34.11/share, shares of FOXA are trading 1.00% below their 20-day simple moving average, 1.24% below their 50-day simple moving average, and 1.29% above their 200-day simple moving average.

Based on their recent trends these numbers indicate a short-term downtrend and a slight long term uptrend for the stock, which generally translates into a selling mode for most near-term traders and a buying mode many long-term investors. With that said, I strongly believe we could see its trend behavior reverse course on the heels of its latest acquisition update.

A Brief Look at the Transaction

On October 8, it was noted that Twenty-First Century Fox Inc. was buying a small TV station in the Seattle area as part of a strategy to own television stations in markets where there is an existing National Football League franchise, in this case the Seattle Seahawks.

According to a filing with the Federal Communications Commission, Fox Television Stations has agreed to pay $10 million or 5.9x its 2013 billings for KBCB-TV, a station owned by Venture Technologies Group LLC.

In my opinion, the price at which Twenty-First Century Fox paid to acquire KBCB-TV was fairly cheap given the fact KBCB-TV broadcasts the games of one of the most exciting and up-and-coming franchises the NFL has to offer, that of course being the Seattle Seahawks who according to the latest Las Vegas odds are a 9/2 favorite to repeat as Super Bowl Champions.

Conclusion

For those of you looking to establish a position in Twenty-First Century Fox, I’d continue to keep an eye on the company’s growth-by-acquisition strategy especially as it pertains to acquiring stations which operate in or near cities that have at least one NFL team. If Twenty-First Century Fox can continue to successfully execute the growth-by-acquisition strategy that I’ve mentioned throughout, then I strongly believe the company should have no problem meeting and/or exceeding full-year EPS and Revenue estimates for both FY2015 and FY2016.