So, I just read that Lions Gate Entertainment (NYSE: LGF) purchased TVGuide.com and TV Guide Network from Macrovision Solutions Corp. (NASDAQ: MVSN) for over $250 million. Here's the press release. The question I have is: Why would Lions Gate want to do this?

I know I'm going to be called pretty ignorant by some for even thinking to disagree with this move, but nevertheless, I disagree with this move. The reason is simple (to me, at least). If I were a shareholder of the company, I think I'd rather have management focus on creating content as opposed to spending a lot of money to buy up a platform. Sure, these TV Guide properties have a high level of brand equity and are indeed widely distributed. But a quarter of a billion dollars is a lot of money, a sum that could have been allocated toward new movie franchises and content acquisitions.

Does Lions Gate really want the hassle of integrating the TV Guide portfolio into its business? Won't that distract the company from focusing on its desire to build a great library of movies and television shows so that it can become an attractive buyout candidate someday? I mean, let me get specific for a second. Take the Saw franchise. That's getting a little long in the tooth, isn't it? I look at that quarter-billion bucks and see a bunch of seed money for a ton of new concepts. If only a few made it to Saw-level, then I can only imagine that it would help shareholder value.

Cable entity Comcast (NASDAQ: CMCSA) had a kicking third quarter. A look through the press release shows a string of double-digit growth rates. Can't complain about that in a distressed economic period. Revenues, operating cash flow, and free cash flow really shined. Adjusted earnings per share increased 33% to $0.24.

According to this article, the bottom line beat expectations by two pennies. However, that article also contained a bit of a bearish take on Comcast's quarter from an analyst. I don't know, I thought Comcast did a decent job considering the recession. There's no question that the business will be affected by the slowdown and the bad housing market. I concede that. But, given that management is maintaining its outlook for revenue and operating cash flow growth, I just don't feel bearish on the stock from a longer-term perspective. And let's think about this. If digital content distribution is destined to be the wave of the future, won't Comcast be a major player in that wave? I would think it would be. Don't get me wrong, it has competition to contend with. You've got Verizon (NYSE: VZ) and its FiOS product, DISH Network (NASDAQ: DISH) and its satellite offerings, etc. Comcast and its Internet/phone services have had great success in terms of resonating with subscribers. The company is doing well, in my opinion, of building valuable brand equity for itself.

And keep in mind that content providers such as Disney (NYSE: DIS), Time Warner (NYSE: TWX), Viacom (NYSE: VIA), and Sony (NYSE: SNE) will always find it to their advantage to work with Comcast on hatching new distribution avenues for content, a fact that will provide further growth opportunities for the cable company. As an example, Comcast, with partners Lions Gate Entertainment (NYSE: LGF) and Sony, is involved with the Fearnet horror channel. Yes, I would definitely say that Comcast is going to increase its reputation as a player in Hollywood. And that should be good for the stock.

Disclosure: I own Disney; positions can change at any time.

Lions Gate Entertainment's (NYSE: LGF) stock rose nearly 5% in after-hours trading on Friday after the movie studio issued its Q1 report. In fact, the stock hit $11 per share. What drove this reaction? Well, Wall Street was figuring on a loss for the company, somewhere around $0.05 per share, according to the AP. However, management fooled everyone by delivering a $0.06 per-share profit. Last year's Q1 saw a net loss of $0.45 per share. The top line was also awesome, rising 50% to $298.5 million. This also went beyond expectations.

These numbers are impressive to a certain extent. Management reported a nice backlog of revenues derived from movie projects that should be recognized in later quarters. There was a lower amount of expensed-costs related to distribution, an element that helped things out a great deal.

Cash flow, however, was an entirely different matter altogether. Lions Gate reported a much wider use of the green stuff this quarter. In fact, the metric more than doubled to nearly $150 million. Changes in working capital affected the cash flow, including increased investments in content productions and a larger booking of participations and residuals. Negative free cash flow also expanded, coming in at roughly $110 million this quarter versus $82 million one year ago.