Paramount Secures New Multi-Year Distribution Deal with Charter Communications, Eases Buyout Speculation

Paramount (PARA) has secured a new multi-year distribution deal with Charter Communications (CHTR), marking a significant victory for the company as it navigates its strategic options and potential buyout offers from Skydance Media, Apollo Global, and Sony. The agreement ensures that Charter will continue to carry all of Paramount’s networks, including Showtime, CBS, and Paramount+.

Under the terms of the deal, subscribers to Charter’s largest tier will also receive the ad-supported versions of Paramount+ and BET+ at no additional cost. Financial details of the agreement were not disclosed.

Analysts believe that this deal is crucial for Paramount, as its TV Media segment heavily relies on linear networks for revenue. MoffettNathanson analyst Robert Fishman noted that Charter had the potential to cause significant harm to Paramount if negotiations had not been successful.

The agreement with Charter comes after a high-profile dispute between Disney and Charter last year, which resulted in Disney pulling its owned and operated channels, including ESPN and ABC, from Charter Spectrum cable systems. The resolution of that dispute involved Charter offering select Disney streaming services at no extra cost to consumers.

With the Charter distribution deal now secured, analysts speculate that Paramount may see renewed interest from potential buyers and could make progress on existing buyout offers. The company’s Office of the CEO, led by a trio of senior executives, may also have more confidence to move forward with its long-term plans.

Overall, the new distribution deal with Charter is seen as a positive development for Paramount as it seeks to solidify its position in the competitive media landscape and explore strategic opportunities for growth.