Altice USA in talks to sell Cheddar News to private equity firm Regent

  • Altice USA is in discussions to sell Cheddar News to Los Angeles private equity firm Regent LP.
  • Altice could be compensated through an earn-out structure in one structure being discussed, sources said.
  • Cheddar sold itself to Altice USA in 2019 for $200 million.

Altice USA in talks to sell Cheddar News to private equity firm Regent© Provided by CNBC

Altice USA is in talks to sell the financial news streaming service Cheddar News to LA-based private equity firm Regent LP, according to people familiar with the matter.

In one iteration of a potential transaction, Altice USA and Regent have discussed a deal where no money will initially exchange hands, one of the people said. Instead, Altice USA would participate in Cheddar’s future performance as part of a so-called “earn out” structure. If Cheddar meets certain performance targets, Altice USA would collect proceeds in future years that could amount to about $50 million based on internal projections, the person said.

Since then, Altice USA, the fourth-largest U.S. cable provider, behind Comcast, Charter and Cox, has looked to shed assets as its stock price has plummeted. Shares have fallen nearly 60% this year amid profit and revenue declines driven by high-speed broadband losses. Altice USA has also considered selling U.S. cable asset Suddenlink but dropped those plans in late 2022.

Regent specializes in transactions with “creative and legal structures combined with pragmatic seller friendly contractual terms,” according to its website. The private equity fund has experience owning and operating assets in the media sector, acquiring publishing company Sightline Media Group from Tegna in 2016 and Sunset Magazine from Time Inc. in 2017. Regent makes investments in many sectors and acquired the Club Monaco brand from Ralph Lauren in 2021.

A representative from Altice USA declined to comment. Regent didn’t immediately respond to CNBC’s request for comment.

The New York Times reported Altice USA was considering selling Cheddar earlier this year.

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.

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