3 Media Stocks in Focus: Dish Network Gets Sued, FCC Won’t Break Up CBS Brawl, and Fox’s Big Quarter
Dish Network (NASDAQ:DISH): Harbinger Capital Partners has sued Charlie Ergen and his company for $4 billion over claims that it perpetrated an allegedly fraudulent scheme to become LightSquared’s biggest lender in an attempt to relieve Harbinger of its control over the now bankrupt communications company. The suite seeks $2 billion in compensation and $2 billion in punitive damages, Reuters reports.
CBS Corp. (NYSE:CBS): A Bloomberg report is signaling that the Federal Communications Commission won’t intervene in the heated negotiations between CBS and Time Warner Cable (NYSE:TWC), Seeking Alpha says. Industry experts have been hinting that programming blackouts in key markets could result in regulators intervening to coerce a solution between the feuding media giants.
21st Century Fox Inc. (NASDAQ:FOXA): Shares are up slightly as adjusted earnings per share of 31 cents missed estimates by 3 cents, though revenue of $7.21 billion beat by 70 million. Losses of $371 million narrowed considerably from $1.55 billion a year ago as pay-TV channel revenues grew 16 percent to $2.95 billion, helped greatly by fee increases and a 10 percent swell in ad revenues. Movie studio revenue increased 3 percent to $2.04 billion, while revenue from local Fox broadcast TV stations remained flat at $1.1 billion.