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Disney and News Corp. Rewarded By Wall Street For Web Focus

Most of the major media conglomerates have continued their sluggish performance on Wall Street, but two--the Walt Disney Company and News Corporation--have perked up lately because of the perception that they've got their broadband game going. According to writer Paul R. La Monica, some firms, particularly Time Warner and Viacom, have "continued to struggle" because they are seen to have been less aggressive in the Net space. "Investors are rewarding media companies with a growth strategy. News Corp. and Disney management have continued to position the companies for growth," Aryeh Bourkoff, an analyst with UBS, tells La Monica. Indeed, even when Time Warner reported record first-quarter results earlier this week, it share price remained stagnant, even dipped a bit--possibly because its AOL unit has not yet demonstrated the earnings performance many observers are looking to see.

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