Shares of Warner Bros. Discovery, Paramount Global, and Walt Disney saw an upward trend on Thursday as the 118-day strike by Hollywood actors finally came to a close.
The SAG-AFTRA union, which represents actors, officially announced the suspension of the strike and the closure of all picket lines following an agreement with the Alliance of Motion Picture and Television Producers (AMPTP) shortly after midnight on Thursday.
While the specifics of the deal have not been disclosed, the union has stated that it is valued at over $1 billion. Described as having an "extraordinary scope," the agreement includes minimum pay increases, provisions for consent and compensation to protect actors from the threat of artificial intelligence, and a streaming participation bonus.
Paramount Global (PARA) experienced a 2% rise in premarket trading, while Disney (DIS), which reported its earnings late Wednesday, saw a 3.8% increase. Netflix (NFLX) stocks remained unchanged.
With the end of the 118-day actors' strike, an obstacle has been removed for TV and streaming companies, allowing them to resume content production.
The Hollywood writers' strike had previously ended in late September, following a tentative agreement between the Writers Guild of America and AMPTP. This agreement, which included higher minimum pay rates, a new residual for streaming services based on viewership, and regulations on the usage of artificial intelligence, was ratified last month.
It is important to note that the actors' strike deal still requires approval, and comprehensive details will only be disclosed after the SAG-AFTRA board has reviewed the tentative agreement.
