CBS Corporation (NYSE: CBS) and Time Warner Cable (NYSE: TWC) have been locked in a fee dispute since Friday, with no end in sight. This has led to CBS stations and cable networks being blacked out in any areas, including New York, Los Angeles, and Dallas. As football season comes up, both companies are feeling pressure to resolve their problems; however, as of Sunday no negotiations are taking place. Retransmission fees, which are the amount of compensation a network gets for allowing a cable company to broadcast their content, are the main issue here. CBS currently receives $1 per subscriber, and wants it raised to $2. TWC claimed that this raise is exorbitant, and that these costs would be passed on to the customer. CBS claims that the massive success of their programs entitles them to a $2 retransmission fee, which is more similar to fees for similarly sized networks (ESPN, for example, receives $5.54 per subscriber monthly). While there are signs that this problem is close to being solved, another problem is at stake. TWC wants CBS to broadcast their collection of older shows - shows which are currently sold to instant streaming companies such as Netflix and Hulu. CBS claims that TWC is trying to get something for free. Until CBS and TWC resolve these issues, the blackout continues. Both stocks are down slightly, with TWC down $0.68 (0.58%), and CBS dropping by $0.67 (1.23%).
For the second time in history, Facebook (NASDAQ:FB) closed above its IPO price. Following a disastrous opening, Facebook sunk by more than fifty percent - briefly sinking below $18. However, after crushing Q2 estimates and revealing explosive growth in mobile monetization the company has surged in price, and closed at $39.19. FB's new advertising strategies have led to massive growth recently, and an increase in the site's dedicated userbase shows that the company has not been affected by aggressive startups. However, in the field of social networking it is hard to keep up a winning streak forever, as was the case with Myspace.
Sources:
http://finance.yahoo.com
http://www.nytimes.com
Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
No comments:
Post a Comment