Entertainment giant The Walt Disney Company ( DIS
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 family-centric offerings.
"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 ( DIS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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