Altice is a cable and internet service provider in the United States of America. The company has recently announced that they will be buying Cheddar. This is a news streaming startup. Altice is buying the company for $200 millions. The prime intention of this deal is to generate revenue by promoting advertisements on this video streaming website.
Jon Steinberg, who is the CEO and founder of Cheddar foundation, informed that he will be leading Altice News. This organization now includes News 12, Cheddar and i24NEWS. The last one is a 24 hour international news channel based out at Israel.
The CEO of Altice in USA, Dexter Goei, describes Steinberg as the turbo charger for Altice. He is expected to expand the balance sheet for the company by boosting its business in advertisements. Dexter also informed that, Cheddar is providing Altice a complete website on general news, political news and business news. So Altice now has the opportunity to showcase advertisements across different markets and customer base. Goei also informed that besides advertisements, the team led by Steinberg will help them get news of good quality and get the same distributed widely.
Cheddar was started in 2016. Steinberg founded the company as a business channel which comes with living streaming feature. The company has gradually expanded from business to general news.
The deal between Altice and Cheddar was first published by the Wall Street Journal. The contract comes at an important time when other digital companies are struggling to ensure sustainable growth. The main reason is, most of the digital advertisements are taken by Facebook and Google. Recently BuzzFeed and Vice Media opted for layoffs for this reason. The same is the case with Verizon Media Group. This includes digital companies like Yahoo, TechCrunch and HuffPo. Cheddar has succeeded in this field and is on its way to double the revenue to approximately $50 million this year.