Time Warner (TWX) probably thought it had the weekend all wrapped up. Sucker Punch looked like it would debut at the top in its opening frame. I don't blame the execs behind this fantasy piece; in theory, it should have brought in all the youthful demographics hungry for a big spring hit to feast upon.

Didn't happen. Instead, News Corp.'s (NWS) Diary of Wimpy Kid: Rodrick Rules was number one with a gross of well over $23 million, according to domestic-theater data at Box Office Mojo. Punch came in second with $19 million.

The New York Times Company (NYT) primarily operates in the newspaper business, with ownership of The New York Times, International Herald Tribune, Boston Globe, and About.com. It competes for online advertising dollars with hybrid publications like News Corp's, The Wall Street Journal as well as Internet-based outlets like Yahoo! Inc. (YHOO), Google, Inc. (GOOG) and AOL, Inc. (AOL).

News Corp. (NWSA - option chain) shares are off a bit today after a company official said at a conference that the company is planning to build its own social-gaming business, hoping to capitalize on the momentum of smaller gaming start-ups like FarmVille maker Zynga. The NWSA official said the social-gaming effort will not be connected to its social network site MySpace, which the company is considering selling. So far this morning, investors are not too optimistic about this news. 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 NWSA.

News Corp. (NWS) competes with other media conglomerates like The Walt Disney Company (DIS), CBS Corporation (CBS), Time Warner, Inc. (TWX), Viacom, Inc. (VIA) and The New York Times Company (NYT) in the media and entertainment business. Our price estimate for News Corp's stock stands at $23.20, which is a premium of roughly 25% to market price.

News Corp. recently revealed its digital magazine "The Daily," specifically designed for Apple, Inc.'s (AAPL) iPad. Rather than being a modification of existing magazines or newspapers, this is a completely new product optimized for tablet viewing. The company had reportedly invested about $30 million to create the product.

CBS Corporation (CBS) issued its fourth-quarter report after the bell today. The results should make shareholders happy. Adjusted net income rose an incredible 77% to 46 cents per share, according to the press release. That number went beyond the estimate by two pennies as indicated by TheFly.

Considering how the stock has fared over the past twelve months, one would have expected a good earnings report. The 52-week low for the shares is $12.26 while the 52-week high is $22.25. The chart communicates a company backed by some solid momentum.

The earnings season has been going pretty good so far, and Walt Disney (DIS) will get its chance to impress Wall Street this afternoon when it reports its fiscal first quarter results after the market closes.

Going into this afternoon's report, analysts are expecting to see the company report earnings of $0.56 per share, up from $0.47 during the same period last year.

Analyst Upgrades

• FedEx (FDX) and Concur Tech (CNQR) to outperform from neutral at RW Baird.
• Hershey (HSY) to outperform from neutral at Credit Suisse.
• Open Text (OTEX) to outperform from sector perform at RBC Capital.
• Bemis (BMS) and Hudson Pacific (HPP) upgraded to buy from hold at KeyBanc.
• InterActiveCorp (IACI) to buy from neutral at BofA/Merrill.
• KB Home (KBH) to neutral from sell at Goldman.
• News Corp. (NWSA) to neutral from underperform at Cowen.

There have been rumors for some time, fueled by occasional comments from News Corp., that the media giant's days of owning also-ran social network MySpace are numbered. News Corp. COO Chase Carey indicated that MySpace may be sold or spun out when he spoke on the company's earnings call on Feb. 2.

Buried in a line item of the News Corp. (NWS) fiscal second-quarter earnings release were the results of MySpace, under the category of "Other." The description of the segment was: "The Other segment reported a second-quarter operating loss of $156 million, which is $31 million greater than the prior year. This decline was primarily due to increased losses at the Digital Media Group, stemming largely from lower search and advertising revenues at MySpace."

News Corp. (NWS) issued its fiscal second-quarter report on Wednesday after the bell. The stock rose 2.5% to $17.51 on active volume by the end of the regular session. The reaction in the after-hours session was, to be honest, dreadfully boring. The shares finished up fractionally to $17.55 at the conclusion of that trading period. Guess the market wasn't too impressed by the earnings news; either that, or it figured that the rise before the posting of the numbers was good enough.

According to the corporate press release, adjusted net income calculated out to 29 cents per share in Q2. That was four pennies above the year-ago profit. Marketwatch says that the 29-cent figure was one penny ahead of the overall estimate.

The world of Internet traffic moves at lightning speed. So, too, do the moods and preferences of users. Back in 2007, News Corp's (NWS) MySpace was No. 1. Google.com (GOOG) took the No. 1 spot in 2008 and 2009. In 2009, Facebook has taken the No. 1 spot, with 8.9% of U.S. visits, edging Google.com, which had 7.2% of visits, Reuters reported, citing online measurement service Experian Hitwise.

Facebook was started by Mark Zuckerberg and a few classmates in 2004. Facebook users can create profiles with photos, lists of personal interests, contact details and other information. Users can communicate with friends and other users through private or public messages and a chat feature. They can also join interest groups and "like pages."

According to an item highlighted by TheFly, it appears as if News Corp. (NWS) may be interested in selling MySpace. There are no guarantees, of course, but I'll tell you this: I hope a sale happens. And the sooner the better.

Sure, in theory, MySpace was a great acquisition. It was the hot destination on the web for a while. Reality, however, has a way of interfering with even the best ideas. The Internet can evolve very quickly; CEOs need to be extremely cautious about what they decide to buy when they are playing this part of the media game.

CBS (CBS) reported third-quarter earnings last Thursday after the bell. On Friday, the shares closed down 3.7% to $17.01. The 52-week high for the stock is $18.20. Although the one-year chart doesn't show a smooth uptrend, it does indicate that the shares have exhibited a certain amount of strength. But does the sell-off on Friday, which was backed by strong volume, tell us that the stock should be avoided?

I've been cautious about this company. I have to admit, though, that it delivered a decent Q3. The press release says that adjusted profit jumped 40% to 35 cents per share. According to the Associated Press, that figure beat projections by four pennies. The AP article also mentioned something not so surprising: advertising dedicated to political races helped the period.