CBS Obtains TV Guide Digital Ownership - Analyst Blog


CBS Corporation ( CBS ) announced the acquisition of the remaining 50% stake in TV Guide Digital, including the and TV Guide Mobile properties from Lions Gate Entertainment Corp . ( LGF ). However, TVGN Cable Network will continue to operate as a joint venture between CBS and Lionsgate.

For quiet sometime now, CBS has been eyeing expansion opportunities in the basic cable arena. In March, the company first acquired the 50% stake in TVGN from JPMorgan Chase & Company 's ( JPM ) One Equity Partners.

The addition of to CBS' impressive portfolio is believed to be a major boost for the latter's digital business as both and TV Guide Mobile enjoy a strong audience in the lucrative TV information category. Moreover, TVGN, which airs reruns of programs like " Who's The Boss ," '' Ugly Betty " and old movies, is now available in more than 80 million homes.

As per the agreement, and the TV Guide Mobile apps will be a part of CBS Interactive's Technology, Games and Lifestyle group.

Alongside, CBS Corporation remains well positioned to drive growth in the coming quarters through its strategic initiatives focused on increasing subscription based revenue channels.

CBS remains optimistic and expects its growth momentum to continue in 2013 based on reverse compensation from affiliates, strong demand of its content, digital distribution, syndication sales and retransmission consent.

CBS is eyeing around $1 billion in retransmission and reverse compensation revenues by 2017. The company also remains positive about CBS Television Network being the growth driver.

Of late, streaming has become a significant source of revenue generation. CBS recently entered into a deal with Inc . ( AMZN ) that extends the latter's archive of television shows and films currently available on its streaming video site, Amazon Prime Instant Video.

Currently, CBS holds a Zacks Rank #2 (Buy).

AMAZON.COM INC (AMZN): Free Stock Analysis Report

CBS CORP (CBS): Free Stock Analysis Report

JPMORGAN CHASE (JPM): Free Stock Analysis Report

LIONS GATE ETMT (LGF): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: AMZN , CBS , JPM , LGF

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