Cablevision lower; media sector trades mainly higher
Copyright 2005 MarketWatch.com Inc.
All Rights Reserved
December 19, 2005 Monday 11:18 AM EST
David B. Wilkerson, MarketWatch
CHICAGO (MarketWatch) -- Most media and entertainment stocks traded higher Monday, though cable operator Cablevision Systems Corp. declined more than 5% after it said it wouldn't proceed with a proposed $3 billion special dividend.
Cablevision (CVC) shares moved down as much as 5.2% and traded recently at $23.01, down 99 cents.
Elsewhere, Time Warner was up as much as 1% at $18.19 amid published reports that search engine giant Google (GOOG) would take a 5% stake in America Online for $1 billion.
Analyst Jessica Reif Cohen at Merrill Lynch told clients Monday that the purported details of the agreement satisfy her criteria for an effective AOL deal. These keys include the securing of a long-term technology partner, bringing more traffic to AOL.com and boosting "the monetization of its current traffic" through better advertising sales, Reif Cohen said.