• New York Post, Tuesday, June 23, 2009 9:17 AM

Could it be that media companies are finally ready for a comeback? After essentially putting up "going out of business" signs, media stocks are now starting to score double-digit gains, outperforming the broader stock market.

Analysts say a new optimism for a strong fall TV season has combined with hopes for more summer blockbusters to help big media and entertainment companies. Some companies have outperformed the gains in the Standard & Poor's 500 by more than a 40-fold rate, such as Warner Music Group. On Monday WMG stock was up 85% this year, after trading at $1.50 just four months ago.

Many advertisers believe they're finally touching bottom in the year's historic advertising washout. "Many are seeing a bottom and are optimistic that cable upfront will be better," says Ed Atorino, media analyst at Benchmark. Ad budgets, such as those at bankrupt automaker General Motors, have already reached bare-bone levels and can only start rising, say analysts. What's more, imported brands are expected to step up their U.S. marketing efforts to grab more market share from down-and-out GM and Chrysler.

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