'Altice USA In Talks To Sell Cheddar News To Private Equity Firm Regent' - CNBC
Portfolio Pulse from Benzinga Newsdesk
Altice USA is negotiating the sale of Cheddar News to Regent LP, a private equity firm. The deal may involve an earn-out structure, with no initial payment but potential future proceeds for Altice based on Cheddar's performance, possibly reaching $50 million. Altice USA, facing a nearly 60% stock price drop and broadband losses, previously acquired Cheddar for $200 million in 2019. Regent has a history of media sector investments. No final deal is confirmed, and Altice USA declined to comment on the ongoing private discussions.
December 11, 2023 | 4:40 pm
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Altice USA is in discussions to sell Cheddar News to Regent LP, potentially receiving future payments based on performance. The company's stock has fallen nearly 60% this year due to profit and revenue declines.
The potential sale of Cheddar News could be seen as a strategic move for Altice USA to streamline its assets and focus on core operations, especially given its recent financial struggles. However, since the deal is not finalized and involves an earn-out structure rather than immediate cash, the short-term impact on ATUS stock is likely to be neutral. The news indicates a shift in strategy but does not guarantee immediate financial improvement.
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