Disney Trades Down After Star Wars Announcement and 4 Media Titans Making Waves
Coinstar, Inc. (NASDAQ:CSTR) shares have been upgraded by Compass Point from Neutral to Buy in a report that was issued on Friday. The firm gives the stock a $50.00 price target, a drop from the previous target price of $55.00.
Walt Disney Co. (NYSE:DIS) trades down after its announcement regarding its acquisition of George Lucas’s entertainment company Lucasfilm for $4.05 billion, and half of the consideration is in cash and approximately 40 million shares of Disney stock. The acquisition is to include the Star Wars franchise, the Indiana Jones franchise, and entertainment technologies Lucasfilm Ltd., LucasArts, Industrial Light & Magic, and Skywalker Sound. This announcement mentioned that “Star Wars Episode 7 is targeted for release in 2015, with more feature films expected to continue the Star Wars saga and grow the franchise well into the future,” and “strengthens the long-standing beneficial relationship” between Lucasfilm and Disney’s theme parks. Disney’s stock dropped $1.08, or 2.16 percent, to $49.00, but Wells Fargo, JPMorgan and Needham, defended it because they all view the acquisition as a positive development for Disney.
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DIRECTV, Inc. (NASDAQ:DTV) and Cox Cable continue to try to reaching an agreement to carry Time Warner Cable’s new sports channel SportsNet in time he first Lakers telecast on Wednesday night. Time Warner Cable’s SportsNet, launched Oct. 1, has become the new TV home for the Lakers and is to be the only channel fans are able to watch 57 of the Lakers’ 82 regular-season games. Additional games are to be available on national outlets that includes Tuesday night’s season opener against Dallas on TNT. Last week, Time Warner Cable struck distribution deals for SportsNet and the Spanish-language service Deportes with Charter Communications, AT&T U-Verse, and Verizon Fios. Cox, DirecTV, and Dish Network are the big holdouts.
News Corp. (NASDAQ:NWSA): After agreeing to combine book publishers Penguin and Random House, Viacom’s (VIA, VIAB) Simon & Schuster unit and News Corp.’s HarperCollins have the ability to be merger candidates, the New York Post reports. News Corp. has made an unsolicited, all cash bid for Penguin, which was turned down, states the Post report, according to those familiar with the situation.
Viacom, Inc. (NYSE:VIA) saw a drop of $.13 or .2 percent, to $52.94.