Digest: Netflix shares jump
EmptyShares of Netflix Inc. jumped 5.7% on Wednesday to $22.60 amid a rumor that Amazon.com Inc. could acquire the online DVD rental pioneer. During the past year, the stock has traded between $18.12-$30. Jackson Securities analyst Brian Bolan said he has heard buyout speculation, adding that it would make sense for Amazon to use its high-flying stock to buy Netflix now. "Netflix, on the other hand, has been facing stiff competition from Blockbuster and everyone else," he said. Bolan said Netflix could fetch $1.5 billion-plus. Netflix, Wednesday's leading gainer on The Hollywood Reporter's Showbiz 50 stock index, declined comment.
Boost for CBS Corp.
Miller Tabak + Co. analyst David Joyce on Wednesday boosted his price target on shares of CBS Corp. by $1 to $37 and reiterated his "buy" rating, suggesting 13% upside, when including dividends. CBS shares have traded between $25.53-$33.82 during the past year. They set a 52-week high of $33.82 on Wednesday before closing down 1.6% at $33.01.
Brit news cuts
News International, a part of Rupert Murdoch's News Corp., said Wednesday that it was cutting editorial jobs at its four national British newspapers to reduce costs amid ongoing revenue pressures in the industry. Media reports put the cuts at about 100 out of nearly 1,400 staffers at the Times, Sunday Times, the Sun and News of the World. The cuts mirror cost savings measures at other U.K. newspaper groups, News International executive chairman Les Hinton said to senior staff. News Corp. chairman and CEO Murdoch met Monday with representatives of Wall Street Journal publisher Dow Jones & Co. and the Bancroft family that controls it. The media conglomerate has proposed a takeover of Dow Jones for $5 billion. A News Corp. spokesman Wednesday declined comment on possible next steps, but industry observers expect more meetings soon.