Rejected Bailout Decimates Media Stocks
On a day when the major financial market indices lost a stunning 6% to 8% of their respective values, many entertainment media companies lost even more ground.
Some of the biggest losers included: Walt Disney Co. shares losing 9.4% on the day, or $3.08, to $29.67. Time Warner dropped 9.3%, or $1.32, to $12.89. Viacom tumbled 7.7%, or $1.97, to $23.54. News Corp. dropped 8.9%, or $1.18, to $12.07 a share.
After the House of Representatives rejected a $700 billion bailout for banks and financial institutions, the financial markets went into a free fall. The Dow Industrials lost 735.55 points to 10,407.58, the most-ever point loss for that index.
Other widely held media stocks--including big cable operators--also had steep declines. Comcast fell 13%, or $2.69, to $18.01. CBS Corp. shares were down 7.1%, or $1.10, to $14.30. Liberty Media Interactive was cut down 9.6%, or $1.29, to $12.16. DirecTV lost 10.9%, or $2.90, to $23.65.
Some the more resistant media stocks on the day included: Charter Communications slipping just 2.4%, or two cents, to $0.82. Belo Broadcasting was off 4.3%, or 27 cents, to $6.06 a share. Meredith Corp. was off 1%, or 30 cents, to $28.77 a share. Cablevision Systems dropped 5.5%, or $1.44, to $24.90.
Big General Electric, part of the Dow Industrial index, and parent of NBC Universal, witnessed a 5% drop or $1.27 of its stock price to $23.98.
One of the worst was the financially troubled broadcasting station company Young Broadcasting. The thinly traded stock lost almost half of its stock price--38%, or three cents--to end up trading at five cents a share.
Two companies actually had positive days today. Nexstar Broadcasting Group was up 14.5%, or thirty-six cents, to $2.84. Another broadcast group, Saga Communications, grew 10.9%--or 55 cents--to $5.60 a share.
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