On Monday, it was announced that a renewal agreement was reached by ViacomCBS (VIAC) for DISH (DISH) Network to continue broadcasting sports, news, and entertainment shows for the network. The terms of the agreement are not yet known, but it’s expected to be a multi-year contract.
The new agreement can come as a relief for many investors. Both DISH and ViacomCBS have reputations for being strict when it comes to establishing contracts for new carriage agreements. In 2016, ViacomCBS held out until the last minute on new contract agreements with DISH until a dispute was resolved.
Similarly, DISH Network is no stranger to tough negotiations with networks. 2018 was the final year DISH broadcast HBO to its subscribers, and in June of this year, the NFL Network and NFL Redzone were pulled from DISH and Sling TV broadcasts.
While DISH Network is suffering losses due to an increasingly smaller satellite TV subscriber base, they did close a deal last week to purchase cell phone carrier Boost Mobile from wireless giant T-Mobile USA. The purchase was secured for $1.4 billion.
At the time of this article’s writing, ViacomCBS stock had risen 1.57% to $23.615, and DISH stock had risen .09% to $33.09. With these two agreements securely in place, DISH stock investors are expected to be watching the company and its market positions closely.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Trader Buzz). I have no business relationship with any company whose stock is mentioned in this article.