Friday, December 28, 2007

Wall Street toTeeVee Network Execs: Bull

Bear Sterns ads some perspective to the writer's strike negotiations (or lack thereof):

The firm estimates that the $120 million figure would carry an average impact of less than 1% on annual earnings per share for the media companies. That does not factor in any concessions by the writers' side (the WGA), where the principal issue is a desire for a piece of ad dollars from new-media distribution.

The potentially small financial impact suggests that studios (Alliance of Motion Pictures and Television Producers) are more concerned about setting a precedent in new-media revenue sharing. However, Bear Stearns wrote that the writers' forecast for that market "strikes us as fairly aggressive." The firm hinted that studios are looking to the future. They are concerned that a favorable settlement would embolden directors and actors in their coming renegotiations.
And if you're not yet taking this one personally, let me bring it on home for ya.

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