English Entertainment
Fox, Viacom & WWE — entertainment stocks on investors’ radar
MUMBAI: Stock-Callers.com has initiated research coverage on four Diversified Entertainment companies, namely: Twenty-First Century Fox Inc., Viacom Inc., Lions Gate Entertainment Corp., and World Wrestling Entertainment Inc. The Entertainment Industry is a constantly evolving group that mainly comprises television networks and station owners, which are typically involved in programming and production of content. Learn more about these stocks by downloading their comprehensive and free reports at:
Twenty-First Century Fox
New York headquartered Twenty-First Century Fox Inc.’s shares finished Friday’s session 2.03% lower at $27.94. A total volume of 29.19 million shares was traded, which was above their three months average volume of 8.53 million shares. The stock has gained 0.23% on an YTD basis. The Company’s shares are trading above their 200-day moving average by 0.19%. Moreover, shares of Twenty-First Century Fox, which together with its subsidiaries, operates as a diversified media and entertainment company in the US, the UK, Continental Europe, Asia, Latin America, and internationally, have a Relative Strength Index (RSI) of 30.99.
On May 08th, 2017, Twenty-First Century Fox announced the appointment of Melody Hildebrandt to the role of Global Chief Information Security Officer. In this role, Ms. Hildebrandt will oversee the protection and risk management for enterprise communications, technologies, and assets for 21CF. She joins the Company from Palantir Technologies, where she served as executive vice president and directed the cybersecurity practice. Her appointment is effective on June 01st, 2017.
On May 11th, 2017, research firm Rosenblatt upgraded the Company’s stock rating from ‘Neutral’ to ‘Buy’. FOXA complete research report is just a click away and free at:
Viacom
Shares in New York headquartered Viacom Inc. ended the day 0.26% higher at $34.61 with a total trading volume of 4.39 million shares. The stock is trading 12.96% below its 200-day moving average. Shares of the Company, which operates as media brand worldwide, have an RSI of 16.05.
On May 05th, 2017, research firm RBC Capital Markets reiterated its ‘Underperform’ rating on the Company’s stock with a decrease of the target price from $35 a share to $30 a share.
On May 10th, 2017, Viacom’s emerging entertainment technology group, Viacom NEXT, premiered an original virtual reality music experience for the song “Withdrawal” by Atlantic Records recording artist Max Frost at the 2017 Microsoft Build Developer Conference. The video harnesses cutting-edge Microsoft Mixed Reality Capture technology, bringing fans face-to-face with photorealistic holographs of Frost, who sings and plays multiple instruments simultaneously in an immersive, underwater environment.
Lions Gate Entertainment
Santa Monica, California headquartered Lions Gate Entertainment Corp.’s stock rose 1.63%, closing the session at $23.72. A total volume of 528,394 shares was traded, which was above their three months average volume of 488,870 shares. The Company’s shares have gained 1.89% in the last one month. The stock is trading 0.25% below its 50-day moving average. Additionally, shares of Lions Gate Entertainment, which engages in motion picture production and distribution, television programming and syndication, home entertainment, branded channel platforms, interactive ventures and games, and location-based entertainment in Canada, the US, and internationally, have an RSI of 54.96.
On May 05th, 2017, Lions Gate Entertainment announced that it will release its Q4 and full year financial results for the fiscal year ended March 31st, 2017 after market close on Thursday, May 25th, 2017. Senior management will hold its analyst and investor conference call to discuss the Company’s FY17 financial results at 5:00 p.m. ET on that same day. Sign up for your complimentary research report on LGF-B at:
World Wrestling Entertainment
On Friday, shares in Stamford, Connecticut headquartered World Wrestling Entertainment Inc. finished the session 0.94% lower at $19.94. A total volume of 257,981 shares was traded. The stock has gained 9.02% on an YTD basis. The Company’s shares are trading above their 200-day moving average by 0.06%. Furthermore, shares of World Wrestling Entertainment, which engages in the sports entertainment business in North America, Europe, Middle-East, Africa, Asia/Pacific, and Latin America, have an RSI of 37.08.
On May 04th, 2017, World Wrestling Entertainment announced financial results for its first quarter ended March 31st, 2017. Revenue for the quarter increased 10% to $188.4 driven by the Company’s Live Events, Network, and Television segments. The Company also reported net income of $0.9 million, or $0.01 per share; operating income of $4.0 million; and adjusted OIBDA of $18.6 million for Q1 2017. Get free access to your research report on WWE
English Entertainment
Warner Bros. Discovery shareholders approve Paramount deal
Investors wave through a $111 billion megamerger but deliver a stinging, if toothless, rebuke over half-a-billion-dollar goodbye packages
NEW YORK: The shareholders said yes to the deal. They said no to the cheque. At a virtual special meeting on Thursday that lasted barely ten minutes, Warner Bros. Discovery investors voted overwhelmingly to approve Paramount Skydance’s $111 billion acquisition of the company — and then turned around and voted against the lavish exit pay packages lined up for chief executive David Zaslav and his fellow outgoing executives.
Not that it will make much difference. The compensation vote is purely advisory and non-binding. The Warner Bros. Discovery board can, and almost certainly will, pay out as planned.
But the symbolism stings. It is the second consecutive year that WBD shareholders have voted against the executive compensation packages, and this time they had good reason. Zaslav’s exit deal is, by any measure, extraordinary. Under the terms filed with the Securities and Exchange Commission, he is set to receive $34.2 million in cash severance, $517.2 million in equity in the combined company, and $44,195 in continued health coverage — a total of at least $550 million. On top of that, Warner Bros. Discovery has agreed to reimburse Zaslav up to $335 million for taxes assessed by the Internal Revenue Service on his accelerated stock vesting, though the company says that figure will decline depending on when the deal closes. As of March 11, Zaslav also held $115.85 million in vested WBD stock awards — and last month sold a further $114 million worth of WBD shares.
Shareholder advisory firm ISS recommended voting against the compensation measure, citing “problematic” tax reimbursements to Zaslav and the full vesting of his stock awards.
Zaslav will be bound by a two-year non-competition covenant and a two-year non-solicitation of customers and employees after the deal closes.
His lieutenants are not walking away empty-handed either. J.B. Perrette, chief executive and president of global streaming and games, is in line for $142 million, comprising $18.2 million in cash severance and $123.9 million in equity. Bruce Campbell, chief revenue and strategy officer, will receive an estimated $121.5 million, including $18.8 million in severance and $102.7 million in equity. Chief financial officer Gunnar Wiedenfels is set for $120 million, made up of $6.6 million in cash severance and $113.1 million in equity. Gerhard Zeiler, president of international, will get $82.6 million, including $11.9 million in severance and $70.7 million in equity.
The deal itself, clinched in February after Netflix declined to raise its bid for Warner Bros., still needs regulatory clearance from the Justice Department and European authorities. Several state attorneys general are also weighing legal action to block it.
Senator Elizabeth Warren, Democrat of Massachusetts, was unsparing. “The Paramount-Warner Bros. merger isn’t a done deal,” she said after the shareholder vote. “State attorneys general across the country are stepping up to stop this antitrust disaster. We need to keep up this fight.”
If it does go through, the combined entity would be a formidable beast, bringing together Paramount Skydance’s stable — CBS, CBS News, Paramount Pictures, Paramount+, BET, MTV and Nickelodeon — with WBD’s portfolio of HBO, Max, Warner Bros. film and TV studios, DC, CNN, TBS, TNT, HGTV and Discovery+. Paramount has said it expects $6 billion in cost savings from the merger, which is Wall Street shorthand for mass layoffs on a significant scale.
The ten-minute meeting was presided over by chairman Samuel Di Piazza Jr., with Zaslav, Campbell, Wiedenfels and chief communications officer Robert Gibbs in virtual attendance. Di Piazza was bullish. “We appreciate the support and confidence our stockholders have placed in us to unlock the full value of our world-class entertainment portfolio,” he said. “With Paramount, we look forward to creating an exceptional combined company that will expand consumer choice and benefit the global creative talent community.”
Zaslav echoed the sentiment. “Over the past four years, our teams have transformed Warner Bros. Discovery and returned the company to industry leadership,” he said. “Today’s stockholder approval is another key milestone toward completing this historic transaction that will deliver exceptional value to our stockholders.”
Paramount Skydance struck a similar note. “Shareholder approval marks another important milestone towards completing our acquisition of Warner Bros. Discovery,” it said in a statement, adding that it looked forward to “closing the transaction in the coming months.”
The shareholders have spoken on the merger. On the pay, they were ignored before the vote was even counted.
