Big M&As, Weak Fundamentals For Hollywood

Entertainment conglomerates are getting ready to downplay weak fundamentals and talk about acquisitions and mergers when they discuss quarterly results with analysts this earnings season. The spotlight on industry consolidation is expected to take the focus off issues like pay TV losses. AT&T’s $85 billion acquisition of Time Warner is nearing the end of its regulatory review, Discovery Communications and Scripps Networks Interactive are discussing a possible combination and Liberty companies is said to set to buy a stake in Univision Communications. Nevertheless, pay TV subscriber trends and advertising momentum will play prominent underlying roles on earnings calls this quarter, according to one analyst. Wall Street will be especially interested in the bottom line at Fox News, which has seen strong ratings but has been dealing with multiple lawsuits.