Oprah Winfrey is teaming up with Discovery Communications to create a new network, cleverly titled OWN, the Oprah Winfrey Network.

The network will not carry her trademark Oprah Winfrey Show to start, but since Ms. Winfrey has the option of ending her deal for the show with the networks in 2010 and 2011, she could move the show there then.

Winfrey told reporters that "Eventually that will happen, we hope". Discovery will own half of the network, and Winfrey's production company will own the other half.

Oprah Winfrey moving to her own cable network would, if it does happen, send shock waves through the television industry and create additional problems for the already beleaguered networks. Similar to Radiohead's decision to forgo the major labels and release their album on their own, such a move would send a clear message to the networks: Cable is ubiquitous enough that top stars don't need you: We can do it ourselves and keep a bigger chunk of the money.

It's too soon to know what will happen. The new network could flop, but given Oprah's popularity, I seriously doubt that will happen.

MAJOR PAPERS:

• Barron's Online's (subscription required) "Inside Scoop" section reported that Thomas Everist, an MDU Resources Group (NYSE: MDU) board member since 1995, has sold a total of 742K shares for a total of $22.6M in MDU stock since May 2, according SEC data.
• The Wall Street Journal (subscription required) reported that EMI Group (OTC: EMIPY), the third largest music company by sales agreed to sell to Terra Firma Capital Partners for $4.74B, possibly ending its seven year battle with Warner Music Group Corp (NYSE: WMG).

OTHER PAPERS:

• According to the New York Post, citing people familiar with the situation, the weakening housing market and other issues are making it difficult for Home Depot Inc (NYSE: HD) to sell its professional supply business.
• Discovery Communications is in talks with CBS Corporation (NYSE: CBS) to sell half its Discovery Times channel and form a joint-venture partnership, according to sources close with the situation, reported the Washington Post.

WEBSITES:

• According to an NDP Group report, April sales of Nintendo's (OTC: NTDOY) Wii consoles were almost 3.5 times higher than Sony Corporation's (NYSE: SNE) PlayStation 3, reported DigiTimes.com.

MOST NOTEWORTHY: Nintendo Co, Ltd (NTDOY) and FuelCell Energy, Inc (FCEL) were the only noteworthy initiations in today's modest-sized list:

• JP Morgan started Nintendo Ltd (OTC: NTDOY) with an Overweight rating.
• Lazard initiated shares of FuelCell Energy (NASDAQ: FCEL) with a Buy rating and $11 target, as the firm believes the company has the best bookings prospects in its history.

OTHER INITIATIONS:

• Discovery Holding Co (NASDAQ: DISCA) was initiated at Pali Research with a Buy rating and $25.50 target. Pali said Discovery now appears committed to developing unique,"on-brand" proprietary content across all its cable networks that it can exploit through an increasing number of distribution platforms; Pali added that this is a company that no longer feels compelled to be in every country around the globe.
• Pacific Crest initiated shares of Vocus, Inc (NASDAQ: VOCS) with an Outperform rating and $28 target, as the firm believes the company has a strong competitive position.
• Cowen initiated Medivation, Inc (NASDAQ: MDVN) with a Neutral rating based on valuation.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).