Adding Harvey Weinstein to the board, one of the most influential people in Hollywood, is one way in which Mr. Snyder can at least ensure that he will 'get a meeting' with key Hollywood insiders and immediately be plugged into the entertainment industry. |
Disney's operating momentum is still the best of all the large entertainment conglomerates, |
Disney's operating momentum is still the best of all the large entertainment conglomerates. |
Even though that is three years away, we believe that the net present value for such a revenue stream is currently not priced into the stock. |
If the current (U.S. economic) recovery is not sustainable, it could adversely affect earnings results, estimates and/or price target, |
It is possible that other financial buyers show interest, though we think given the leverage likely required by an acquisition and the lack of a clear exit strategy, it would be difficult to justify the purchase. |
It is unclear to us why it makes sense to sell a portion of AOL's equity at this point in time, especially if management believes it can make the advertising model work and perhaps dramatically increase the value of the business. |
Satellite companies are working on smaller bases, and their (market) shares have been growing since 1995 when they started. Their growth rate is slowing, however. Part of that is due to the fact that cable has got more arrows in their quiver now by being able to offer more services to a customer. |
The cost of producing movies has stayed in check the last couple of years. Marketing costs have gone up, but it's still a benefit because it feeds a nomination for a studio that's part of a larger conglomerate such as a cable network. |
The direct benefit to them is through the box office, which not only benefits that revenue stream, but also home video, pay TV and the like. Indirectly, it benefits them because it potentially drives the right talent to them. |
The lack of a company auction will likely immediately cause some PKS shareholders to take profits, as the stock has run up considerably since Dan Snyder began his campaign for control in July 2005. |
The most important aspect of tomorrow's meeting is to get everybody on board and to understand the overall strategy of what they are doing. |
We believe investors have already priced in $3.0 billion of buybacks, and GM's shares do not represent incremental repurchases of equity. |
While the studio's performance in the quarter will look dreadful, we don't think it reflects a significant negative turn in Disney's film business. |