EmptyThe 'Shrek' effect
Sander Morris Harris analyst David Miller downgraded shares of DreamWorks Animation from "buy" to "neutral" on Wednesday, arguing that "the dramatic run-up in the shares during the past six months fully reflects the earnings power of "Shrek the Third." Miller said that CGI studios typically see share appreciation six to nine months ahead of the next big release. "With that event now a mere six weeks away, we believe upside potential beyond $33 is limited, at least in the near term," the analyst said. DWA shares closed down 3.9% at $30.18. During the past year, they have traded from $20.05-$31.58.
Netflix adds to board
Online DVD rental firm Netflix Inc. has added a top executive from network equipment maker Cisco Systems Inc., which is pushing into the consumer video market, to its board. The addition of Charles Giancarlo, Cisco senior vp and chief development officer, expands the Netflix board to eight directors. "Serving on the Netflix board will bring me closer to the needs of all Web video companies, and while I love getting my red envelopes today, I can't wait to eventually get all of my Netflix content online," Giancarlo said.
Guthrie managing for Providence
Private-equity firm Providence Equity Partners Inc., which specializes in media and information industry investments, has hired Michelle Guthrie, the former CEO of News Corp.'s Star satellite TV operation in Asia, as a managing director for the Asia-Pacific region. Like other private-equity groups, Providence this year started building a presence in Asia. It has offices in Hong Kong and New Delhi.