Altice USA Contemplates Selling Cheddar News: Altice USA, the cable operator, is apparently contemplating selling Cheddar News, once called “CNBC for millennials,” only a few years after its takeover.
Altice USA has hired Goldman Sachs to evaluate Cheddar News’ strategic options, according to three anonymous sources. However, Altice may decide not to sell. Altice USA and Goldman Sachs have not commented.
Altice USA’s sale of Cheddar News would indicate a dramatic retreat from their big investment in the streaming news startup. Altice, backed by French-Israeli entrepreneur Patrick Drahi, bought Cheddar in 2019 for $200 million. The move was intended to strengthen the company’s news branch, which already operated News 12 networks. Cheddar promoted itself as the future of financial journalism by showing exclusive conversations with key CEOs, newsmakers, and journalists from the New York Stock Exchange.
Cheddar operates via unusual distribution partnerships, unlike regular cable networks. Jon Steinberg, the network’s creator and former BuzzFeed president, signed deals to make Cheddar accessible on numerous platforms, including Gas Station TV (yep, the one you see at the pump) and MTV’s college campus network, which Cheddar purchased in 2018.
These distribution partnerships have not all been as profitable as cable distribution. Instead of carriage fees, which cable-TV providers pay every viewer, Cheddar depends on advertising income. Media firms must compete with internet giants like Meta (previously Facebook) and TikTok, which dominate the digital ad industry, using this economic model. As a consequence, Cheddar has struggled and laid off workers.
Altice USA’s stock has fallen 70% in the last year. The firm, which provides internet services in 22 states, saw a 14% dip in news and advertising income in the first quarter. The second-quarter results release will likely illuminate the company’s financial performance.
Altice future of USA in media depends on the sale of Cheddar News. The company’s decision will certainly affect the cable sector and digital media and news consumption. Altice’s business strategy and market position will be affected by this strategic change.