Altice USA is reportedly in talks to sell Cheddar News to Regent LP, a private equity firm based in Los Angeles.
While Altice USA and Regent LP have not disclosed any details, people familiar with the matter said the companies have discussed a potential “earn out” deal, according to CNBC. This agreement means Altice USA will continue in a diminished capacity with Cheddar News and collect payments if the news service meets specific performance targets. If this type of agreement is reached, Altice USA could receive $50 million based on internal projections.
A spokesperson for Altice USA said the company doesn’t “comment on rumors or speculation” when asked for confirmation. Regent LP was not available for comment.
Cheddar News was launched by Jon Steinberg in 2016 as an ad-free, live-streaming financial news network geared towards millennials. By 2017, the network had reached 148 million views across all platforms. In 2019, Altice USA bought Cheddar News for $200 million, which became part of Altice USA News. Steinberg stayed on through Cheddar’s transition and exited the company in 2022. Altice’s Chief Executive Officer Dexter Goei, who supported the acquisition, stepped down later that same year.
Less than five years after the acquisition of Cheddar News, Altice began the search for a buyer in April, according to The New York Times. Shares of Altice USA fell 70% this year as the company saw declines in profit and revenue. During the first quarter, revenue from news and advertising fell 14%. Altice considered selling Suddenlink as well but decided against the idea in 2022.
Cheddar’s linear programs are available to 40 million households on Sling TV, DIRECTV NOW, Hulu Live TV, YouTube TV, Fubo, Philo, Pluto TV, Prime Video, Roku devices, and the Cheddar app. Cheddar News also nets 400 million views a month on social media platforms.