The Walt Disney Company(NYSE:DIS)'s proposed purchase
of Lucasfilm and the `Star Wars' franchise will be on the radar on Thursday
evening when the media and entertainment company will be announcing its third
quarter results after market closes.
The company announced the new abut its intended
acquisition for $4.05 billion last week and said that it planned to revive the
hit movie series trilogy starting in 2015.
Analysts will be expecting Walt Disney to throw more
clarity on this acquisition and its future plans. The Street will also be
interested in the advertising market, which has been looking soft of late, a
result of the slowdown in the economy and the sluggish corporate profit growth.
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Broadcasters are facing tough times with TV ratings
having gone down this season, compared to last year. Advertisers usually peg
their marketing and ad budgets depending on the viewership of programmes.
A good chunk of viewership in July to September was
taken away by NBC, which had the rights to the broadcast of the London
Olympics. This has hurt other broadcasters such as ABC network and CBS Corp.
The cost involved in making the acquisition as well as
other expenses involved in making the next film in the Star Wars series is
expected to be a drag on the company's profitability. Lucasfilm has been
estimated to generate $800 million in revenues annually.
Analysts polled by expect Disney to post adjusted
earnings of 68 cents per share on $10.9 billion in revenue.
Last year, Disney earned an adjusted 59 cents per
share on revenue of $10.4 billion.
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