Source: Hollywood Industry
(Multichannel News) _ Jefferies & Co. cable analyst Robert Routh reiterated a “buy” rating and $20 price target on World Wrestling Entertainment stock after the programmer reached a DVD-distribution deal with a company headed by Hollywood moguls Harvey and Bob Weinstein.
WWE cut an exclusive DVD-distribution deal with Genius Products, majority-owned by The Weinstein Co. The Weinsteins, co-founders of Miramax studios, are co-chairmen of the Weinstein Co. The deal, which takes effect Nov. 1, is exclusive for three years and involves WWE’s entire DVD library including SmackDown and WrestleMania .
It also includes co-production and co-financing arrangements which should help it mitigate risk, according to Routh’s report.
