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CHICAGO (AFX) - Walt Disney Co. closed modestly higher ahead of its release of fiscal first-quarter results later Monday, as most media shares headed lower.
Disney reported net income of $734 million, or 37 cents a share, compared with $686 million, or 33 cents a share a year ago. Revenue climbed 2% to $8.85 billion from last year's level of $8.67 billion.
The company also said it would combine its 22 ABC radio stations and the ABC Radio Network with the assets of Citadel Broadcasting Corp. in a deal worth $2.7 billion. Citadel shares rose 4 cents to close at $12. Disney declined 5 cents to end the day at $24.96.
Meanwhile, Time Warner shares gained 17 cents to close at $18.57.
Billionaire financier Carl Icahn is about to obtain support from Capital Research & Management, the company's largest institutional shareholder, in his battle for control of Time Warner, according to a report in The Times of London.
Icahn and Bruce Wasserstein, the chairman of Lazard, will present the firm's plan to boost value for Time Warner's holders on Tuesday at the St. Regis Hotel in New York.
Time Warner said Monday that it has agreed to sell Time Warner Book Group to French publisher Lagard?re SCA for $537.5 million.
Most newspaper shares were lower, including Journal Communications , McClatchy , New York Times Co. and Media General .
Sirius Satellite Radio was up as much as 4.5%, closing at $5.49, up 16 cents. Merrill Lynch's Laraine Mancini told clients that overblown investor fears had pushed the stock 10% lower in the last week, creating "an attractive opportunity" to buy the stock.
Among these fears, Mancini cited the fact that Sirius and rival XM Satellite Radio are releasing fourth-quarter earnings later than many expected; that investors worry about a possible increase in subscriber acquisition costs, and various negative comments about XM. This story was supplied by MarketWatch. For further information see
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