Verizon and CBS Announce Content Distribution Deal (VZ, CBS)
Early on Thursday, Verizon Communications Inc. (VZ) and CBS Corporation (CBS) announced that they have reached an agreement to continue transmission of CBS-owned stations on Verizon’s FIOS TV in multiple markets across the country.
Not only will Verizon FIOS TV be continuing to broadcast CBS stations in some markets, but the two companies reached a deal to allow a wider distribution of CBS Sports Network. Terms of the deal were not disclosed.
“We are very pleased to reach this agreement with Verizon and its FIOS service,” said Ray Hopkins, President, Television Networks Distribution, CBS Corporation. “This deal was reached in a short period of time, and CBS has once again achieved fair value for our over-the-air rights. Verizon is a distribution partner of growing importance to us that provides excellent service to its expanding number of subscribers, and we are glad that this partnership will continue and grow.”
“We’ve reached this agreement in partnership with CBS for our customers, so that they may continue to enjoy CBS content on FiOS,” said Terry Denson, Vice President of Video Content and Strategy at Verizon. “Verizon continues to address areas of change where necessary in current policies to better reflect the interests of consumers.”
The deal comes at a time when CBS and Time Warner Cable (TWC) are in a dispute about broadcast fees.
Verizon shares were down a fraction during early morning trading on Thursday, while CBS shares were up $1.35, or 2.65%.
The Bottom Line
Shares of Verizon (VZ) offer a dividend yield of 4.36% based on Thursday’s intraday trading price of $47.27 and the company’s annualized dividend payout of $2.06 per share.
Shares of CBS Corporation (CBS) offer a dividend yield of 0.93% based on Thursday’s intraday trading price of $51.73 and the company’s annualized dividend payout of 48 cents per share.
Verizon Communications Inc. (VZ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. CBS Corporation (CBS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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