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Media stocks popped Thursday, well outperforming the broader market, after news that the months longs SAG-AFTRA strike has been settled, with the actors’ guild and the AMPTP announcing a agreement last night. Halted productions can soon look to restart, the theatrical release calendar can stop shifting and the industry begin to get back to normal after a tough summer and fall.
There were gains across entertainment shares with Warner Bros. Discovery up more than 3% at $9.70 after a major selloff yesterday — when it fell 19% — on a soft advertising outlook delivered its third quarter earnings.
Disney is up nearly 6% at about $8.90 just after the open. It closed down slightly (off 0.11%) Wednesday ahead of earnings that were generally well received by Wall Street. CEO Bob Iger, on the company’s quarterly earnings call after market close yesterday, had indicated that a settlement was very close. CEOs have been very involved in the rocky contract talks over the past weeks.
Paramount Global is up nearly 4% at $12.30 after an 8% drop Wednesday.
Lionsgate, which reports earnings later today, is up 2% at $9.28 after a 5% yesterday. Abd Fox, which is a bit less impacted than the others, was nonetheless up a strong 9%.
After 118 days of the actors guild being out on strike, SAG-AFTRA and the studios on Wednesday reached a tentative deal on a new contract that could see Hollywood up and running again within weeks.
The strike was formally over of 12:01 a.m. PT on Thursday, putting an end to more than seven months of labor unrest in Hollywood that saw the Writers Guild and SAG-AFTRA hit the picket lines in the industry’s first joint strike in more than 60 years.
The guild’s 17-member negotiating committee unanimously to recommend a tentative agreement to the SAG-AFTRA board. That is set to happen Friday, when specific details of the deal will likely be revealed. SAG-AFTRA says that its tentative agreement with the studios is worth more than $1 billion over three years and added that it has “extraordinary scope” and “unprecedented provisions.”
More To Come…