Media stocks rose early Thursday on news that the months-long SAG-AFTRA strike had been resolved and the Screen Actors Guild and the AMPTP announced an agreement last night. Stalled productions can soon resume, the theatrical release calendar could no longer be postponed and the industry is starting to return to normality after a tough summer and autumn.
There were gains in entertainment stocks, including Warner Bros. Discovery rallied more than 3% to $9.70 after a big selloff yesterday (when the stock fell 19%) on a weak advertising outlook heading into Q3 profit.
Disney rose nearly 6% to around $8.90 shortly after opening. The index closed slightly lower on Wednesday (+0.11%) ahead of earnings results that were generally well received by Wall Street. CEO Bob Iger indicated yesterday after the market closed at the company’s quarterly results that an agreement was very close. CEOs have been heavily involved in difficult contract negotiations in recent weeks.
Paramount Global rose nearly 4% to $12.30 after falling 8% on Wednesday.
Lionsgate, which reports earnings today, rose 2% to $9.28 after rising 5% yesterday.
Fox, which was slightly less affected than the others, still saw a strong rise of 9%.
After a 118-day strike by the actors’ guild, SAG-AFTRA and the studios reached a tentative agreement Wednesday on a new contract that could get Hollywood back up and running within weeks.
The strike officially ended at 12:01 a.m. PT Thursday, ending more than seven months of labor unrest in Hollywood as the Writers Guild and SAG-AFTRA took the pick of the line in the industry’s first joint strike in more than 60 years. Year.
The guild’s 17-member negotiating committee voted unanimously to recommend a tentative agreement to the SAG-AFTRA board. That will happen on Friday, when specific details of the deal are expected to be announced. SAG-AFTRA said the tentative deal with the studios is worth more than $1 billion over three years, adding that it has “extraordinary scope” and “unprecedented terms.”
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Source: Deadline
Bernice Bonaparte is an author and entertainment journalist who writes for The Fashion Vibes. With a passion for pop culture and a talent for staying up-to-date on the latest entertainment news, Bernice has become a trusted source for information on the entertainment industry.
