Altice Buys Streaming Financial News Network Cheddar For $200M

Altice USA Inc ATUS, one of the largest broadband communications and video services providers, has reached an agreement to acquire Cheddar.

What Happened

Altice will pay $200 million to acquire Cheddar in an all-cash deal, The Wall Street Journal first reported Tuesday. Cheddar's founder and CEO Jon Steinberg will transition to become president of a newly created unit called Altice News.

Altice News will include its already existing News 12 channel and i24News, along with Cheddar's suite of content including live business, general news and a college network focused on millennial audiences.

Steinberg will use some of the proceeds from the acquisition to invest in Altice's stock as a sign of commitment.

Why It's Important

Altice invested in Cheddar back in 2017 and the two entities discussed a merger over the past six weeks, according to WSJ. Altice CEO Dexter Goei told WSJ he didn't want to "pull the trigger" earlier as he wanted Steinberg to "prove out the model he's been building."

Altice highlighted in its press release several strategic benefits from the acquisition of a streaming video platform, including:

• The ability to reach a broader and more diverse audience;
• Generating more value for advertisers;
• Access to Cheddar's network of large national brands who advertise on its platform; and
• Ability to develop and deploy new advertising products across Altice's footprint.

What's Next

Altice's acquisition is expected to finalize in the coming two months and remains subject to customary regulatory approval.

"The Altice team and Altice Way are as entrepreneurial as it gets with amazing markets, world-class local and international news, an amazing broadband network, and a soon to launch mobile offering," Steinberg said in the press release. "I can't wait for Cheddar to begin working with Altice's team."

Altice traded around $23.34 per share Tuesday afternoon.

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