ViacomCBS Inc (NASDAQ:VIAC) and Nexstar Media Group Inc. (NASDAQ:NXST) have announced the extension of their longstanding strategic partnership. As part of the new deal, Nexstar wholly owns subsidiary Nexstar Media and its operating partners have agreed to renew affiliation agreement in 39 markets with CBS Television Network.
Viacom is a multinational mass media company that owns and operates broadcast television stations. It also provides cable network services. ViacomCBS’s upcoming earnings report for Q4 2021 is scheduled for February 10, 2022. Viacom dividends have increased steadily over the last 13 years leading to a dividend yield of 2.83%
Conversely, all CBS affiliates will be available to subscribers in Paramount+. Additionally, they will be widely distributed across vMVPD platforms, able to reach 14% of the U.S. audience serving about 17.4 million households.
According to Ray Hopkins, President, U.S. Networks Distribution, ViacomCBS, the agreement affirms commitment to continue maintaining strong relationships to serve the audiences better. By teaming up with CBS affiliated, Nexstar should be able to deliver a great value proposition to its viewers. Additionally, the company should bolster its advertising platform for local and international clients.
Nexstar CW acquisition
The extension of the strategic partnership comes on the heels of reports Nexstar is contemplating becoming a majority owner of CW. The network came into being as a co-venture between CBS and Warner Bros. In the recent past, it has emerged that ViacomCBS and WarnerMedia have other priorities apart from the co-venture
While neither participant is yet to comment on the matter, the transaction could go through, given that Nexstar boasts of the largest collection of CW stations following its acquisition of Tribune. The company also comes backed with a strong balance sheet capable of completing a transaction of such magnitude. As it stands, it is in a position to complete a large deal that will strengthen its competitive edge and enable it to be in control of its programming.
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