Altice USA is currently engaged in discussions to sell Cheddar News, the ad-free financial news network, to Regent LP, a private equity firm based in Los Angeles.
While neither company has officially disclosed details, insiders familiar with the matter reveal that the potential deal could take the form of an “earn out,” allowing Altice USA to retain a diminished role with Cheddar News and receive payments contingent on the news service meeting specific performance targets.
If the agreement is finalized, Altice USA stands to gain $50 million, according to internal projections.
When approached for confirmation, a spokesperson for Altice USA refrained from commenting, stating the company does not respond to rumors or speculation. Regent LP has not provided any comments on the matter.
Cheddar News, founded by Jon Steinberg in 2016 as a live-streaming financial news network targeting millennials, gained significant traction, amassing 148 million views across all platforms by 2017. In 2019, Altice USA acquired Cheddar News for $200 million, integrating it into Altice USA News.
Jon Steinberg remained with Cheddar through its transition but exited the company in 2022. Altice USA’s Chief Executive Officer Dexter Goei, a supporter of the acquisition, also stepped down later the same year.
The decision to sell Cheddar News comes less than five years after its acquisition, initiated in April when Altice began exploring potential buyers.
This move follows a challenging period for Altice USA, evidenced by a 70% decline in shares this year, accompanied by drops in profit and revenue. In the first quarter alone, revenue from news and advertising saw a 14% decrease.
Although Altice USA considered selling Suddenlink in 2022, the company ultimately decided against the idea.
Cheddar’s linear programs are presently accessible to 40 million households through platforms like Sling TV, DIRECTV NOW, Hulu Live TV, YouTube TV, Fubo, Philo, Pluto TV, Prime Video, Roku devices, and the Cheddar app.
Additionally, Cheddar News commands a substantial online presence with 400 million monthly views on various social media platforms.
As the negotiations unfold, the fate of Cheddar News and its potential transition under the ownership of Regent LP remains a focal point in the evolving landscape of media acquisitions.
