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Warner Bros. Discovery,
Paramount Global,
and
Walt Disney
stocks climbed Thursday after the 118-day Hollywood actors’ strike finally came to an end.
The SAG-AFTRA union representing actors said the strike officially was suspended and all picket lines closed after reaching an agreement with the Alliance of Motion Picture and Television Producers just after midnight Thursday.
Details of the deal have yet to be revealed but the union said it was worth more than $1 billion. It said the deal of “extraordinary scope” includes minimum pay increases, provisions for consent and compensation that will protect actors from the threat of artificial intelligence, and a streaming participation bonus.
Shares of
Paramount Global
(PARA) rose 2% in premarket trading, while
Disney
(DIS), which reported earnings late Wednesday, were up 3.8%.
Netflix
(NFLX) stock was flat.
Warner Bros.
(WBD) stock pointed 2.8% higher in premarket trading after plunging 19% Wednesday. It was the stock’s worst day in more than two years, after the company reported a wider-than-expected loss in the third quarter. The company cited the Hollywood strikes as a reason for a significant decline in TV revenue. Subscriber numbers and advertising revenue also fell.
The end of the 118-day actors’ strike removes a headwind facing TV and streaming companies and allows the industry to get back to making content.
The Hollywood writers’ strike ended in late September after the Writers Guild of America reached a tentative agreement with AMPTP. The deal, which included increases to minimum pay rates, a new residual for streaming services based on viewership, and regulations on the use of artificial intelligence, was ratified last month.
The actors’ strike deal also need to be approved, and full details are expected to be revealed once the SAG-AFTRA board has reviewed the tentative agreement.
Write to Callum Keown at [email protected]
Read the full article here
