| 2017-10-18 11:26:50|
AMZN, NFLX… 11:26 10/18 10/18/17
Amazon Studios head Roy Price officially resigns amid harassment claims
Shares of Amazon.com (AMZN) are in focus after the head of Amazon Studios resigned following his suspension over sexual harassment allegations. RESIGNATION OF ROY PRICE: Roy Price, the head of Amazon Studios, has resigned from the media company just days after he was suspended indefinitely. The resignation of Price, who helped launch the Amazon unit and ran it from the beginning, follows allegations of sexual harassment from Isa Hackett, an executive producer of The Man in the High Castle, as well as statements by actress Rose McGowan that Price knew about her rape accusations against fallen Hollywood producer Harvey Weinstein. Hackett claimed Price made "lewd" comments to her during Comic-Con 2015 in San Diego. Hackett told The Hollywood Reporter that she reported the improper behavior to Amazon at the time, and that while the company took the allegation seriously, she was never told the outcome of that inquiry. "I'm pleased Amazon is taking steps to address the issue," Hackett told THR following Price's resignation. According to Deadline Hollywood, rumors about Price's resignation were flying in the spring, and Paramount TV President Amy Powell had been named as a potential replacement. According to Deadline, she is still in the running "as the new head of Amazon Studios likely would be a woman." For the time being, Amazon chief operating officer Albert Cheng will take over as studio head. WHAT'S NOTABLE: Last week, reports surfaced that Amazon Studios was cutting ties with the Weinstein Co. following allegations against Weinstein, adding that Amazon scrapped a $160M Weinstein Co.-produced television series from Oscar-nominated director David O. Russell. According to reports, Amazon had already spent $40M on the show. Price's exit "raises a question" about the future of Joe Lewis, Price's top lieutenant who has been scrutinized over "potential conflict-of-interest issues," Deadline said. Amazon competes in original video with Netflix (NFLX), Apple (AAPL) and Hulu, a joint venture between Comcast's (CMCSA, CMCSK) NBC Universal, Disney (DIS) and 21st Century Fox (FOX, FOXA), and some believe Price's resignation could be a setback. PRICE ACTION: Amazon is fractionally lower in late morning trading to $1,007.89.
See Street Research during your Free Trial