Weekly Media Stocks Roundup: <em>Newsweek</em> Sold, Earnings Galore

Media stocks had a mixed week, as the broader market experienced a decent rally. Over the past five days, the S&P 500 climbed 1.8% to finish at 1122. Headlines abounded for The Washington Post Co. (WPO). On Monday, the company offloaded Newsweek onto stereo-equipment mogul Sidney Harman at a reported price of $1 and assumption of the magazine's considerable liabilities. Along with official confirmation of the sale came news that editor Jon Meacham would be leaving the magazine as soon as a replacement was found. And then today, the Post Co. announced that second-quarter earnings rose to $91.9 million from $12.2 million a year ago. The flagship newspaper continued to experience hardship, posting an operating loss of $14.3 million. Proposed federal rules that might hinder the company's Kaplan education business hindered the stock, which finished the week down 11% at $376. Amid a bid by founding Playboy editor to take Playboy Enterprises (PLA) private, the company announced a second-quarter loss of $5.4 million, an improvement over a year-ago loss of $8.7 million. Shares slipped 0.7% to $5.41. Meanwhile, Newsday parent Cablevision (CVC) showed gains in operating profit, while its newspaper division posted a narrowed loss on falling revenue. The stock slipped 2.4% to $26.74. News Corp. (NWS) shares climbed 6.6% to $15.77. Wall Street cheered as the company swung to a second-quarter profit on an 8% year-over-year increase in revenue. Weekly stock results for Time Warner, Meredith Corp. and more after the jump. At Time Warner's Time Inc. magazine publishing division, Jack Griffin emerged as successor to CEO Ann Moore. Griffin comes from business-to-consumer publisher Meredith Corp. (MDP), shares of which rose 1.9% to $32.36. Time Warner also reported earnings on Wednesday. The media conglomerate announced a 7.3% year-over-year increase in net income to $562 million. Shares added 2.9% to $32.36. On the same day, former Time Warner subsidiary AOL (AOL) swung to a second-quarter loss of $1.1 billion thanks to a major goodwill impairment charge. Revenue fell 26%. Shares rocketed 7.3% higher to $22.44. The New York Times Co. (NYT) debuted a new service called "Press Engine," which applies its mobile-device infrastructure to other media companies' content. Also this week, analysts at Morningstar said the stock was overvalued. Shares shed a penny to $8.73. More media stock results: • A. H. Belo (AHC): Down 1.6% to $7.62 • IAC/InterActive (IACI): Up five cents to $25.05 • Martha Stewart Living Omnimedia (MSO): Up ten cents at $5.15 • Thomson Reuters (TRI): Down 1.7% at $36.82 • Gannett (GCI): Down three cents at $13.15

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Weekly Media Stocks Roundup: Newsweek Sold, Earnings Galore

Mike Taylor

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