Altice USA Inc (NYSE: ATUS) had some jump in its price Monday. Disney (NYSE: DIS) and Altice disclosed an agreement in principle in programming talks and extend deadline to finalize terms
The Bethpage, New York-based broadband communications and video services provider hammered out the agreement with “The Mouse” in relation to the dispute over channel carriage and retransmission fees.
The retransmission contract between the two companies was set to expire on Sep 30. The contract's deadline has currently been extended in order to finalize the terms.
The news implies uninterrupted access to Disney's ESPN, ABC, the Disney Channel and other networks for Altice USA's Optimum cable customers in New Jersey, New York, Connecticut and Pennsylvania.
However, no further details of the tentative agreement have been provided by either of the companies.
Disney and Altice USA disagreed over the amount the cable operator will pay to continue offering ESPN, ABC and other channels on its Optimum cable service.
Disney's most important network, ESPN, has been losing subscribers and witnessing downward ratings, leading to declining revenues. As a result, Disney intended to increase its per-subscriber fees to offset revenue declines. Altice USA claimed that the programming fees were already high.
The stock improved 67 cents, or 2.5%, early afternoon on Monday, to $27.98, within a 52-week trading range of $26.11 to $35.29.
For its part, Disney picked up $1.55, or 1.6%, to $100.12, within a 52-week range of $90.32 to $116.10.
