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Entertainment One rebounds as Peppa Pig maker refutes report its president and chief content officer in talks to quit

The FTSE 250-listed firm’s comments followed an exclusive in the Hollywood trade title ‘Variety’ which said veteran film and TV producer Mark Gordon was headed for the exit
Peppa Pig
Entertainment One shares tanked in late trade on Wednesday before bouncing on Thursday, up 16.7% in afternoon trading

Entertainment One PLC (LON:ETO) shares rebounded higher on Thursday after the Peppa Pig maker refuted a report that its president and chief content officer was in talks to quit.

The FTSE 250-listed firm’s comments followed an exclusive in the Hollywood trade title ‘Variety’ which said veteran film and TV producer Mark Gordon was headed for the exit following a stand-off with senior managers.

READ: Entertainment One drops as full year sales disappoint

In a on-line statement, the company said: “In response to recent press speculation, Entertainment One can confirm that Mark Gordon continues to be a part of the eOne team both now and into the future."

The American bank Citi said there appeared to be a “mismatch” between what the article was actually reporting – namely, that Gordon’s role may change - and the share price reaction.

Entertainment One shares tanked in late trade on Wednesday before bouncing on Thursday, up 16.7% to 408.490p in afternoon trading.

“The market appears to have jumped to the conclusion that Mark Gordon is set to exit Entertainment One altogether (based on the negative tone and commentary on internal relations and, perhaps, inaccurate conclusion in the article that suggests there could be a complete departure),” Citi said in a note to clients.

“The comment made by the company implies an exit is not on the cards -‘very important part of the eOne team now and in the future’ – this is not a statement we would expect if an announcement of his departure was imminent.”

In its note, City broker Numis - which is strong on the media and entertainment companies – repeated a ‘buy’ rating on Entertainment One shares up to 573p and saw Wednesday’s dip as an opportunity to pick up the stock on the cheap.

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