Cheddar News Parent Altice USA In Talks To Offload News Service To Private Equity: CNBC
Portfolio Pulse from Anusuya Lahiri
Altice USA, Inc (NYSE:ATUS) is in discussions to sell Cheddar News to private equity firm Regent LP with an earn-out deal structure, potentially yielding future proceeds of up to $50 million. Altice USA, which acquired Cheddar for $200 million in 2019, has seen its stock price drop nearly 60% this year, amid declining profits and revenues from high-speed broadband losses. The company reported a Q3 revenue decline but beat consensus estimates.
December 11, 2023 | 5:54 pm
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Altice USA is negotiating the sale of Cheddar News to Regent LP, with no initial cash but potential future earnings. The company's stock is down due to overall performance issues.
The news of Altice USA potentially selling Cheddar News indicates a strategic shift and potential for future earnings, but the current stock price decline reflects broader issues with the company's performance, including revenue and profit declines. This could lead to a negative short-term impact on ATUS stock as investors may perceive the sale as a move to address financial challenges rather than growth.
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IMPORTANCE 75
RELEVANCE 100