Viacom, Charter agree to extend renewal deadline: source


(Reuters) – Viacom Inc and Charter Communications Inc agreed on a short-term extension of their renewal deadline, a source familiar with the matter said, as the companies aim to avoid the immediate blackout of Viacom networks.

If no deal is reached, 16.6 million subscribers of Charter’s Spectrum service will lose Viacom’s networks, which include Comedy Central, MTV and Nickelodeon.

Viacom and Charter are working to “reach a mutually beneficial deal,” said the source, who did not want to be identified.

Viacom stands to lose $760 million, or about 16 percent, of its annual affiliate revenue if an agreement is not reached, according to an analyst at Gabelli & Co, Viacom’s second-largest voting shareholder.

Both sides are under pressure from cord-cutting, or dropping of pay television, as audiences flock to cheaper streaming services that have emerged in the past decade.

An agreement between the two companies would be “mutually beneficial,” wrote Evercore ISI in an note Sunday.

Reporting By Jessica Toonkel; Editing by Bill Rigby and Amrutha Gayathri

Source link

Products You May Like

Articles You May Like

U.S. Treasury chief may visit China as trade tensions simmer
Shipper Hapag-Lloyd plans 20 percent cut in CO2 emissions by 2020
Toshiba eyes cancelling chip unit sale if no China approval by May:…
IRS gives taxpayers one-day extension after computer glitch
U.S. top court curbs human rights claims against companies

Leave a Reply

Your email address will not be published. Required fields are marked *