While many media and entertainment stocks struggled during the first quarter, there were a few that managed to perform fairly well.
The best of the largest entertainment companies was Sony Corp. (SNE) which was very strong for the quarter, up by 18.1 percent, to finish at $50.49.
News Corp. (NWS-A) finished the first quarter up by 10.2 percent, with a number of analysts liking the deal between the company and satellite provider DirecTV Group (DTV) exchange of shares held by Liberty Media. Voting on the deal by sharholders will be Tuesday of this week.
Merrill Lynch analyst Jessica Reif Cohen said, "In addition to the direct benefits of the agreement, including 1) significant share buyback; 2) exit from the competitive U.S. distribution business, which is challenged for a triple-play solution; and 3) removal of Liberty overhang, we foresee other benefits to News Corp. shareholders assuming the vote passes."
While the Walt Disney (DIS) company was only up a little, it was enough to be a huge positive, as the majority of media companies faltered. For them they finished with a small 0.5 percent increase for the quarter, which was able to beat the meager 0.2 percent the S&P 500 was up.
Citing the success that Disney has had in implementing cross-platform content with their ESPN and Disney Channel properties, Prudential Equity Group analyst Katherine Styponias is very bullish on the company, she said that, "Juggernaut 'High School Musical' as well as 'Hannah Montana' are helping drive DVD, soundtrack sales and video games."
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