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CHICAGO (AFX) -- Media and entertainment stocks closed mixed Thursday, with Pixar Animation Studios taking a breather after the shares scored an 8% increase in the previous session.
Pixar declined $2.16, or 3.7%, to close at $56. Credit Suisse First Boston cut its rating on the maker of computer-generated animated films to neutral from outperform, saying the stock "seems priced for perfection."
Amid renewed speculation about a takeover of the Steve Jobs-controlled company -- possibly by Walt Disney Co. -- CSFB analyst William Drewry noted that while a buyout could happen down the road, Pixar's stock price "seems to anticipate most of that as well."
Pixar rival DreamWorks Animation SKG shed 1 cent to $25.75.
Satellite broadcaster DirecTV plans to offer on-demand airings of Fox and FX cable network shows such as "The Shield" and "24" as early as 48 hours before they're seen on those networks for $2.99 per episode, beginning in March.
DirecTV and Fox Entertainment Group are controlled by Rupert Murdoch's News Corp. .
The companies said that later in the year, the episodes will be available up to six to seven days after their airings on Fox and FX for 99 cents per episode.
Satellite radio also was in the media spotlight.
Shares of XM Satellite Radio Holdings fell 55 cents to close at $27.29 after it reported a 2005 subscriber total that fell short of its previous forecast. The company said it ended the year with 5.93 million subscribers, shy of its estimate calling for a base of more than 6 million.
Separately, Sirius Satellite Radio days away from the long-anticipated arrival of popular radio host Howard Stern, said Thursday that it will grant Stern more than 34 million shares of Sirius stock worth nearly $220 million because it exceeded its subscriber target for 2005.
The company said it ended 2005 with 3.32 million subscribers, with a gain of 1.14 million net subscribers in the fourth quarter in the run-up to Stern's debut. It had previously forecast that it would have more than 3 million subscribers. Sirius shares rose 3 cents to $6.39.
Meanwhile, McGraw-Hill Cos. slipped marginally to $51.58 after the publisher and financial-information services provider said it has cut about 500 jobs as part of a fourth-quarter restructuring effort. The company also said it anticipates a charge of $14.6 million, or 4 cents a share, as a result of the cuts.
Newspaper publisher and broadcaster Tribune Co. lost nearly 2% to close at $30.48 after Bear Stearns analyst Alexia Quadrani cut her rating on the stock to peer perform from outperform.
Quadrani told clients "weak" advertising conditions in both the newspaper and television industries "continue to hurt company results and we see little room for stock outperformance at this time." This story was supplied by MarketWatch. For further information see
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