DOW JONES- $12588.31

S&P 500- $1359.88

NASDAQ- $2853.13

The Walt Disney Co.- $47.42

News Corp.- $23.74

Time Warner Inc.- $44.70

In recent news from my industry, entertainment diversified, according to Forbes, the price estimate for News Corp stands at $28, which implies a premium of more than 15% to the market price. Forbes goes on to say that there is potential for the company to unlock more value if they can sustain margin growth it has seen in the past few years. They believe News Corp could be a $31 stock if its cable networks’ margins continue to increase to a point where they can rival those of Disney, their competitor. News Corp has demonstrated strength in its cable networks business driven by an improvement in advertising and subscription fee. This segment saw 16% growth in revenues in the recent quarter thanks to 16% and 25% growth in affiliate revenues for domestic and international operations, respectively. This growth has resulted from News Corp’s focus on its sports network and original content for other networks such as FX, which has allowed the company to negotiate price increases. As a result, margins have grown too.

From what I have read and have been reading about News Corp over the past couple weeks, I believe that the company can and will continue to grow and succeed and become more valuable over the next few years. The company has made some deals to renew their contract with its CEO that has helped get them to where they are today. Also they have made deals to acquire other companies to expand its reach. Therefore I believe investing in this company would be a smart and profitable decision.

DOW JONES- $12815.39

S&P 500- $1379.85

NASDAQ- $2904.87

The Walt Disney Co.- $47.06

News Corp.- $24.74

Time Warner Inc.- $44.67

This week in my industry, entertainment diversified, according to Zacks Equity Research, News Corporation announced the completed acquisition of The Walt Disney Company’s stake in their joint venture “ESPN STAR Sports (ESS).” ESS was the 50/50 joint venture between Disney’s ESPN and News Corporation, providing Asian sports fans a diverse collection of sports programs across 24 countries through 28 networks.

Earlier in June, the company announced that it will acquire ESPN’s 50% stake in ESS.  ESS, with its right mix of exclusive sporting licenses with top sporting leagues emerged as an industry leader in the pay-TV industry. With the acquisition, ESS is now the wholly-owned subsidiary of News Corporation. We believe that the buyout will enhance the company’s position in sports programming, thus bringing in incremental revenues through advertising and subscriptions.

Further, owing to a mandatory shift to a digital addressable system in India, the move better positions both the companies to independently manage their brands and generate positive cash flows while significantly expanding digital opportunities. News Corporation strives to add diverse revenue streams to hedge against economic volatility. The company is focusing on the emerging markets to expand its media business, since these regions have millions of viewers.

News Corporation’s significant international presence has helped it broaden its client base and product portfolio. Among others, the company competes with Time Warner Inc. The company recently posted first-quarter 2013 earnings of 43 cents a share beating the Zacks Consensus Estimate of 37 cents, and rose 34% from 32 cents earned in the prior-year quarter on the back of double-digit growth across Cable Networks. Including one-time items, News Corporation posted quarterly earnings of 94 cents a share, soaring from earnings of 28 cents delivered in the year-ago quarter.

Things for News Corp. are looking quite well and I look forward to seeing their stock prices continue to increase and for them to continue to make acquisitions and smart choices that will benefit stockholders.

DOW JONES- $13,093.16

S&P 500- $1414.20

NASDAQ- $2982.13

The Walt Disney Co.- $49.86

News Corp.- $24.26

Time Warner Inc.- $43.36

This week in news from my industry, entertainment diversified, according to Wall St. Cheat Sheet, Disney has announced it will acquire Lucasfilm, the company behind the Star Wars saga, in a $4.05 billion deal, also revealing with the announcement that it plans to release a seventh movie in the series. The cash and stock deal adds Lucasfilm to a portfolio of stand-alone brands owned by Disney, including Marvel, ESPN, and Pixar.

“For the past 35 years, one of my greatest pleasures has been to see Star Wars passed from one generation to the next,” said Mr Lucas, chairman and chief executive of Lucasfilm. “It’s now time for me to pass Star Wars on to a new generation of filmmakers.”

Disney’s “reach and experience” will help Lucasfilm “blaze new trails in film, television, interactive media, theme parks, live entertainment, and consumer products,” he added.

The deal for Lucasfilm is the third multi-billion dollar acquisition to be made under CEO Bob Igner, who also oversaw the $7.4 billion purchase of Pixar in 2006 and the $4 billion purchase of Marvel in 2009. Lucasfilm also brings with it a considerable consumer products business, with revenues in 2012 comparable to the $215 million generated by Marvel Entertainment before it was acquired in 2009. Lucasfilm’s licensing and merchandise potential, particularly in international markets, was a large part of its appeal for Iger. The six Star Wars films have generated a grand total of $4.4 billion at the box office — no mean feat but hardly justifying Disney’s $4 billion acquisition offer alone. The deal also includes Lucasfilm’s prized high-tech production companies, Industrial Light & Magic and Skywalker Sound, as well as rights to the “Indiana Jones” franchise, the most recent film of which grossed $786.6 million at the box office globally.

I believe this deal is a very smart move for Disney. I believe that in a couple of years this deal will increase stock prices and overall profits. I am also very excited, along with many others, about a new Star Wars movie being made.