Big Media Cos. Take Hits, but Sit Well-Positioned to Weather the Crunch – Media Buyer Planner October 1, 2008
Posted by Mark Blei in : Uncategorized , trackbackDiversified companies like Walt Disney, News Corp., Time Warner and Viacom are well-positioned to weather the current credit crunch; they are likely to be supported by predictable revenue streams and high margins, according to Fitch Ratings.
In addition, the companies’ credit lines are unlikely to be affected by the mergers of Citigroup with Wachovia and Bank of America with Merrill Lynch, writes Bloomberg.
Still, shares of Walt Disney and Time Warner were hit hard after the House refused to pass the government bailout package for the financial sector. The companies led the entertainment sector in losses, both declining 9.2 percent on Monday. The market rallied on Tuesday, regaining a large part of what it lost the day before, but media stocks lagged in the bounce-back, Broadcasting & Cable points out.
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