Tom Reese/Paul Rubillo, Dividend.com
Viacom (VIA-B) and Time Warner Cable (TWC) have agreed on compensation that preserved access for the cable system operator's 15.7 million subscribers to the Nickelodeon network, MTV and 17 other channels.
Both companies had been disagreeing over fee hikes, but came to terms just as a blackout would have come into play at midnight Thursday. Terms were not disclosed but Viacom had demanded a 12 percent increase in fees, which would have been an extra $39 million on top of the estimated $300 million Time Warner Cable pays Viacom annually.
The Bottom Line
Viacom shares had dropped nearly 60% of in 2008. The stock has bounced 50% higher off of recent lows. If the stock can stabilize and gain some further momentum, the overhead resistance comes in the $22-25 area. Time Warner Cable (TWC) is coming off of recent all-time lows as its shares lost more than 20% in 2008. The stock is looking at overhead resistance in the $25-26 area.
Neither of the two companies mentioned above currently pay a dividend.
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