Report weighs ripple effect of writers strike on Street

December 28, 2007 The report, a primer on the Hollywood writers' strike, seeks to figure out how the ongoing labor disruption might affect stock prices of the media conglomerates. At most, predicts Bear Stearns, a new WGA contract will knock 1% annually off of the earnings per share of the companies named above, and that is after factoring in a five-times multiplier to account for the ripple effect of a beefier contract for the DGA and SAG. "Networks should benefit from lower programming costs as they will likely replace scripted programming with lower-cost reruns and/or reality programming," according to the report.

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