Warner Bros., Paramount higher on reports writers' strike nearing end

Reports suggest the months-long Hollywood writers' strike could come to an end as early as today.

Sep 21, 2023 - 18:30

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Warner Bros., Paramount higher on reports writers' strike nearing end

Warner Bros. Discovery (WBD) - Get Free Report shares jumped higher in pre-market trading, leading its media rivals to solid early gains, following reports that the months-long writers strike could be coming to an end.

Media heavyweights Bob Iger of Disney (DIS) - Get Free Report and David Zaslav of Warner Bros. Discovery reportedly attending a meeting between the Writers Guild of America and the Alliance of Motion Picture and Television Producers, which represents Hollywood studios and streaming tech giants, that could suggest a deal is imminent in ending the five-month dispute over pay and streaming compensation.

Media reports suggest the groups will meet again Thursday, with suggestions a deal could be unveiled over the coming hours. The ongoing strike launched in July by the Screen Actors Guild, however, looks set to remain.

Warner Bros trimmed its full year earnings forecast earlier this month, and now sees adjusted earnings of between $10.5 billion and $11 billion, as a result of the strikes, which which it had forecast to end in September, would likely rise to between $300 million and $500 million by the end of the year.

Late last month, the group's studio division said it would delay the release of its "Dune: Part Two" sequel, originally set for November, until at least March of next year following a warning from CEO David Zaslav that the industry is in "unchartered waters" as a result of the industrial action at the heart of the global movie industry.

Warner Bros. Discovery shares were marked 2.5% higher in pre-market trading to indicate an opening bell price of $11.79 each. Paramount Global (PARA) - Get Free Report shares, meanwhile, were marked 3% higher at $13.64 each.