Entertainment giant The Walt Disney Company (
) announced Friday that it is selling its Miramax Films unit to an
investor group for about $660 million.
The agreement with Filmyard Holding ends a 17-year association
with Miramax for Disney, and ends a six-month bidding process.
Disney said the film studio no longer fits in with its more
"Although we are very proud of Miramax's many accomplishments,
our current strategy for Walt Disney Studios is to focus on the
development of great motion pictures under the Disney, Pixar and
Marvel brands," said Disney CEO Robert A. Iger said in a statement.
"We are delighted that we have found a home for the Miramax brand
and Miramax's very highly regarded motion picture library."
The deal could close at soon as Sept. 10.
Disney shares were mostly flat in premarket trading Friday.
The Bottom Line
We recently removed shares of DIS from our recommended list, when
the stock was trading at $37.04. The company has a 1.04% dividend
yield, based on last night's closing stock price of $33.71. The
stock has technical support in the $30 price area. If the shares
can firm up, we see overhead resistance around the $36 price level.
We would remain on the sidelines for now.
The Walt Disney Company (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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