Breakthrough In Hollywood: Writers, Producers Close To Ending 100-Day Strike

Paramount Global PARA and Warner Bros. Discovery, Inc WBD stocks are trading higher Thursday amid reports of Hollywood writers and producers nearing a deal to end the strike.

Negotiations to end the Writers Guild of America (WGA) strike have advanced significantly, with writers and producers meeting face-to-face on Wednesday. 

The two sides are near an agreement and aim to finalize a deal by Thursday, CNBC cites familiar sources.

The strike has persisted for over 100 days, with actors joining the picket line in July, causing a standstill in Hollywood's TV and movie production. 

This development marks the closest the two sides have come to resolving the strike since over 11,000 film and TV writers initiated the strike on May 2. 

Their primary grievances include inadequate compensation compared to streaming-era revenues.

High-level executives from major media companies, including Warner Bros. Discovery CEO David Zaslav, Walt Disney Co's DIS Bob Iger, Netflix, Inc's NFLX co-CEO Ted Sarandos, and NBCUniversal film head Donna Langley, have been engaged in discussions with the striking writers.

The strikes have taken a toll on media companies attempting to make streaming profitable and revitalize theater attendance. 

Warner Bros. Discovery, for instance, adjusted its earnings expectations, anticipating an impact of $300 million to $500 million on adjusted EBITDA due to the strikes.

At an investors' conference, David Zaslav emphasized the industry's focus on resolving the strikes and getting people back to work, underlining the need for a fair resolution.

Price Actions: WBD shares are up 0.962% at $11.61 premarket on the last check Thursday. PARA shares traded higher by 1.06% at $13.38.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.