DreamWorks Animation's (DWA) Shrek Forever After is an overall disappointment (in my opinion, at least) because of its relatively weak opening theatrical gross, but I am impressed by its third-weekend performance. According to early estimates at Box Office Mojo, the cartoon, distributed by Viacom (VIA), is in the top spot yet again. It took in $25 million at domestic theaters, and its total gross so far stands at over $180 million.

Surprisingly, Get Him to the Greek, from General Electric's (GE) Universal Pictures, made only $17 million. That was good for second place, but I thought it would have easily done over $20 million. Universal has to be at least a little down on this debut, but I knew the project's relatively low budget, which is reportedly $40 million, would offer some room for spinning. This Reuters article quotes an exec doing just that.

Lions Gate (LGF - option chain) shares are rising today after activist investor Carl Icahn upped his tender offer for an 81% stake in LGF this morning by 17% to $7 per share. The offer values the company at $825 million. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on LGF.

LGF opened this morning at $6.91. So far today the stock has hit a low of $6.82 and a high of $6.95. As of 12:05, LGF is trading at $6.87 up 0.50 (7.9%). The chart for LGF looks bullish.

What an interesting weekend at the box office. There was a lot to watch for those who invest in the media sector. Let's have a look at what went on.

First, Time Warner Inc. (TWX) scored with Clash of the Titans. I think most observers were expecting this one to reign supreme. According to estimates available at the time of this writing over at Box Office Mojo, Titans made over $60 million in the domestic marketplace. Shareholders are hoping that this will be the start of another good run for the studio. As you'll probably recall, Time Warner was very successful in the celluloid game during 2009.

Well, it's finally happened. Someone wants to buy Lions Gate Entertainment (LGF). However, it's not the head of a big media conglomerate who has an eye on the movie studio. Instead, it's famed activist investor Carl Icahn.

Of course, I'm sure you know all that by now. How can anyone have missed the drama surrounding the situation? There are a ton of news reports out there covering the topic, so let me simply bring you up to date with a link to an open letter from Icahn to Lions Gate, and a link to management's response. It makes for wonderful reading.

Lions Gate Entertainment (LGF - option chain) shares are rising this morning after activist investor Carl Icahn announced a hostile takeover bid for the company. LGF had rejected his offer to take a larger stake in the company earlier in the week. He had made a tender offer of $6 per share, which he declined to raise this morning. A bid like this will usually create a floor for a stock's price, which can make an options trade with a bullish stance safer. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on LGF.

LGF opened this morning at $6.24. So far today the stock has hit a low of $5.86 and a high of $6.32. As of 12:15, LGF is trading at $60.01 up 0.04 (0.7%). The chart for LGF looks bullish.

We all have our watch lists. I'm no different. Here are four companies that I monitor almost every single day, and a brief opinion on each of them.

Activision Blizzard (ATVI): I sold this one back in January. Some believe I was wrong to do so. I definitely comprehend the sentiment, because really, this is the best publisher in the sector. Compared to Electronic Arts (ERTS) and Take-Two Interactive (TTWO), Activision Blizzard has an enviable pipeline. Unfortunately, the video-game industry isn't firing on all cylinders; check out the most recent monthly-sales report, and you'll see what I mean. In addition, the company's Guitar Hero franchise isn't the fad it once was. I do want to get in on the stock again, though; lately, the price seems to be perking up. I'm not ready to send in the buy order just yet. I'm waiting for further strength to materialize in the shares.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Activision Blizzard Inc. (ATVI) reported better-than-expected Q4 earnings and declared an annual dividend.
• Allstate Corp. (ALL) swung to better-than-expected Q4 earnings and also swung to a full-year profit.
• Buffalo Wild Wings Inc. (BWLD) shares tumbled after it posted disappointing earnings tied to costs.
• The Cheesecake Factory Inc. (CAKE) posted better-than-expected Q4 earnings but sales were flat.
• Chipotle Mexican Grill Inc. (CMG) earnings numbers for Q4 resulted in upgrades from two analysts.
• CVS Caremark Corp. (CVS) higher Q4 earnings matched the expectations of analysts, and shares rose.

Lions Gate Entertainment (LGF), a content studio operating in the same industry as The Walt Disney Company (DIS), Sony Corporation (SNE), Time Warner Inc. (TWX), and Viacom, Inc. (VIA), released third-quarter results to the market on Tuesday after the bell. The numbers weren't spectacular, but there were some definite improvements.

Lions Gate lost 55 cents per diluted share in Q3. According to my earnings preview, Wall Street was hoping for a loss closer to 23 cents. On the bright side, the company lost 84 cents per share in last year's report, so at least execs stopped the red ink from getting any redder.

I love the media sector, so Tuesday, February 9, will be an exciting day for me. After the market finishes its trading activities, we'll get reports from two entertainment companies: one's a big player in Hollywood, while the other would like to be just as big someday.

Let's start with the big gun. The Walt Disney Corporation (DIS) has first-quarter numbers all set to go, and investors are hoping for an unambiguous beat on the bottom line. The call is for net income to fall somewhere around 39 cents per share, according to Earnings.com. Kind of lousy, considering the Mouse made 41 cents per share in last year's Q1.

We all knew News Corp.'s (NWS) Avatar would cede the top spot to some film someday. To be honest, I didn't think Sony's (SNE) Dear John would be the one to do it.

According to Box Office Mojo, John grossed roughly $32 million at domestic theaters. That was more than enough to put the sci-fi flick in second place. However, no one should feel sad for News Corp.; Avatar's worldwide haul now stands at over $2.2 billion.

World Wrestling Entertainment (WWE) hasn't fully succeeded with its film model. The company's slate has yet to produce a bona fide hit yet. Because of this, management has decided to change the strategy governing the operations of the WWE Studios asset.

WWE has elected to take over the marketing/distribution chores for its movies, ditching previous partners Lions Gate Entertainment (LGF) and News Corp. (NWS) in the process, as this article at Variety indicates. However, there's an even bigger change that all shareholders should focus on.

Time Warner's (TWX) The Book of Eli did a commendable job of attempting to dethrone News Corp.'s (NWS) Avatar from the top spot. In the end, it failed. James Cameron has produced a hit that will simply not be stopped. At the time of this writing, early estimates from Box Office Mojo credited the picture with capturing another $41 million over the past weekend at domestic theaters. Avatar is closing in on $500 million, an accomplishment which makes you wonder if this is the wintertime or the summertime.

Eli came in second with $31 million. A reasonably good start for Time Warner considering the power of News Corp.'s new Titanic; word of mouth is now key to propelling the apocalyptic project into solid blockbuster status. The film reportedly has a budget of $80 million attached to it, so hopefully the worldwide gross will be stellar even if the domestic take falters.

You just can't stop News Corp.'s (NWS) Avatar. James Cameron's epic 3D picture grossed $48 million at domestic theaters over the weekend, as of early estimates from Box Office Mojo. This puts the grand total at almost $430 million (worldwide, Avatar has made well over a billion bucks). Amazing for this time of year.

News Corp. is also counting its money from Alvin and the Chipmunks: The Squeakquel, which is ranked in third place at the time of this writing; its total gross now stands at roughly $178 million. Coming in second is Time Warner's (TWX) Sherlock Holmes action adventure. It's possible Holmes and Squeakquel could change places once final numbers are released, since both are credited with similar weekend amounts. Nevertheless, Holmes has now raked in about $165 million.

News Corp.'s (NWS) Avatar is exploding like a blinding supernova at the box office. Although I have no interest in seeing it, I undoubtedly must be one of the only people on the planet who lacks the need to become immersed in the 3-D adventure. According to early estimates at Box Office Mojo, James Cameron's "titanic" cinematic beast scored another $68 million at domestic theaters over the New Year's weekend. Total so far: better than $350 million.

Time Warner's (TWX) take on a famous literary detective had to settle for second place yet again. Sherlock Holmes pulled in $38 million. Coming in third was the Alvin and the Chipmunks sequel, also released by News Corp. Indeed, there's no shortage of excitement at the multiplex.

We all have wishes and resolutions ready for New Year's Eve. I'm eager to get a lot done in 2010, and I'm hoping for certain investment events to transpire. One of them involves Lions Gate Entertainment (LGF). I want the company to get its house in order and give me an excuse to take on some shares.

Without question, Lions Gate has been a profitable trading vehicle for some; for the rest, it's been fun to watch. At some point, though, I'd like to move from being a passive observer of the studio to one with a vested interest. That's because I think it'll be an excellent takeover play sometime in the future.