Stock Sock: $112 Billion in Media Value Destroyed Since May
Seven Hollywood congloms have been hammered by investors during the past eight months, and 2016 started with a bust, not a bang — though entertainment market caps (especially takeover target Time Warner) have kicked off the new year on a slightly positive note.
A version of this story first appeared in the Jan. 29 issue of The Hollywood Reporter magazine. To receive the magazine, click here to subscribe.
Three weeks into 2016, Wall Street is calling it the worst start to a year ever, with the S&P 500 down 8.6 percent and more than $1.5 trillion in wealth wiped out as of Jan. 21. But media and entertainment companies, crushed in 2015 because of cord-cutting concerns, at least have held their own.
Among the industry's seven major conglomerates, $32.95 billion in wealth has been destroyed this year, though only Disney and Sony have underperformed against the broader markets. The year's only gainer is Time Warner, courtesy of rumors the company is a takeover target.
Taking a wider view, the S&P 500 topped out May 21 and the index is down 12 percent since, exceeding the 10 percent threshold for a market correction. Unfortunately for media investors, $111.63 billion in wealth has been destroyed since the May 21 high, which goes beyond a mere "correction."
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