) announced the acquisition of the remaining 50% stake in TV
Guide Digital, including the TVGuide.com and TV Guide Mobile
Lions Gate Entertainment Corp
). 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
) One Equity Partners.
The addition of TVGuide.com to CBS' impressive portfolio is
believed to be a major boost for the latter's digital business as
both TVGuide.com 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
" and old movies, is now available in more than 80 million
As per the agreement, TVGuide.com and the TV Guide Mobile apps
will be a part of CBS Interactive's Technology, Games and
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
) that extends the latter's archive of television shows and films
currently available on its streaming video site, Amazon Prime
Currently, CBS holds a Zacks Rank #2 (Buy).
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