The strike by the Writers Guild of America, which has crippled production of TV show and films, is likely to end this week, according to several media sources. The division between the writers and studios over revenue from internet content appears to have been addressed. According to The Wall Street Journal (subscription required), "in discussions between the studios and the Writers Guild, one particular issue was the money a writer makes when a television show is streamed on the Internet with advertising. The writers won a 2% share of a distributor's gross in the third year of the contract."

Now Wall Street can turn to the issue of whether the weakness in big media company shares may begin to abate. Stocks of companies with large TV and film revenue may get a boost from the news. That may only be temporary if a recession claims growth in TV ad dollars and studio ticket and DVD sales.

CBS (NYSE: CBS), Disney (NYSE: DIS), and Viacom (NYSE: VIA) have all traded down since Christmas, though several large media companies say that they are not seeing slowdowns in their businesses.

But, advertising cannot escape a share slump, so settling the writers strike may do very little for shareholders this year.

Douglas A. McIntyre is an editor at 247wallst.com.

MAJOR PAPERS:

• Increasing credit card delinquencies have caused banks to tighten their lending standards, which the Wall Street Journal said could result in a sharp pullback in consumer spending that would further weaken the slowing U.S. economy.
• The Wall Street Journal also reported that U.S. criminal prosecutors have informed the Securities and Exchange Commission that they are seeking information gathered through its civil investigation of Merrill Lynch & Co Inc (NYSE: MER). The regulators will examine whether the securities firm booked inflated mortgage bond prices held despite knowing the valuations had dropped.

• The major Hollywood studios and the Writers Guild of America are close to concluding a deal that could end the writers' strike as early as Monday, the LA Times reported.

• According to Wired, online contact management service Plaxo has accepted an offer for nearly $200M. Sources believe the purchasing company is "most likely" Google Inc (NASDAQ: GOOG).

• In a setback for U.S. foreign policy, General Musharraf of Pakistan has imposed emergency rule amidst a political crisis, tightly controlling the courts, and media outlets, in addition to holding about 500 government opponents and changing several Supreme Court justices, according to the Wall Street Journal (subscription required).
• For the first time in 20 years, the Writers Guild of America, whose members total 12,000, has failed to reach an agreement with the Alliance of Motion Pictures and Television Producers, and a strike is expected to take effect today, reported the Wall Street Journal.
• Kraft Foods (NYSE: KFT) may sell its Post cereals to Ralcorp Holdings (NYSE: RAH) for about $2.8B, according to the Wall Street Journal.

• The U.K. Times reported that Vodafone Group (NYSE: VOD) is the frontrunner to acquire a 25% stake in Telekom International, a division of state-controlled Telekom Malaysia.
• Shares of British supermarket chain J Sainsbury (OTC: JSAIY) plunged 18% in London today after Qatar Investment Authority abandoned its GBP10.6B bid for Sainsbury, reported the U.K. Times.
• Google (NASDAQ: GOOG) is expected to hold a press conference today to unveil a suite of software for mobile phones that will be based on open-source technology and will be backed by some of the largest wireless industry companies in the world, reported CNet.com.

MAJOR PAPERS:

• Following Chrysler's lead to cut costs in relation to slowing sales, Ford Motor Company (NYSE: F) may cut its 2008 spending by 15%, according to the Wall Street Journal (subscription required).
• The Writers Guild of America, battling with Hollywood film and TV producers, is expected to call for a strike, reported the Wall Street Journal.
• Siemens AG (NYSE: SI) CEO Peter Loscher is getting ready to implement aggressive earnings targets for the company's senior managers, as well as thousands of job cuts, reported the Financial Times (subscription required).

• According to two people familiar with the talks, the latest round of negotiations to buy Trump Entertainment Resorts (NASDAQ: TRMP) have fallen apart, reported the New Jersey Star-Ledger.
• From BusinessWeek's "Inside Wall Street" column:
  
• Investors may now be looking at AT&T (NYSE: T) as a "high-quality stock for the long haul," says Justin Hellman of Value Line.
• While many investors may be looking at Clinical Data's (NASDAQ: CLDA) possible blockbuster antidepressant drug and genetic test, they are banking on the company's Chairman Randal Kirk, who controls 40% of the stock.
• MoneyGram International (NYSE: MGI) may be looking for buyers, and John Bendall, CEO of Hermitage Capital, thinks it is worth $30 a share.