Paramount and Mediacom renew distribution agreements

MEDIACOM PARK, N.Y. - Paramount Global (NASDAQ:PARA, PARAA), a prominent player in the media industry with annual revenue of $28.72 billion, and Mediacom announced Tuesday the renewal of their comprehensive distribution agreements, ensuring continued delivery of Paramount’s broadcast, entertainment, news, and sports networks across Mediacom markets. According to InvestingPro data, Paramount’s stock is currently trading near its 52-week high, reflecting positive market sentiment around its distribution strategy.

The multi-year agreements extend Mediacom’s carriage of Paramount’s networks, including CBS, BET, Comedy Central, MTV, Nickelodeon and Paramount Network. As part of the renewal, Mediacom will now be able to offer the Paramount+ Premium plan to qualifying customers. This expansion comes as InvestingPro analysis suggests the company is currently overvalued, with multiple financial metrics and additional insights available in the Pro Research Report.

"We are pleased to strengthen our valued long-term partnership with Mediacom," said Ray Hopkins, President of Paramount U.S. Distribution. "With this renewed agreement, we look forward to bringing audiences greater flexibility and expanded access to the best in news, sports and entertainment from our powerhouse portfolio of popular brands."

Italia Commisso Weinand, EVP Programming & Human Resources at Mediacom Communications, noted that the agreement allows the company to offer linear TV service alongside streaming options, providing customers with more choices.

Mediacom, the fifth largest cable operator in the United States, serves over 3 million households and businesses across 22 states, primarily in the Midwest and Southeast.

Financial terms of the agreement were not disclosed, according to the press release statement.

In other recent news, Paramount Global reported better-than-expected earnings for the first quarter of 2025, with earnings per share (EPS) of $0.29, surpassing the forecast of $0.27. The company also exceeded revenue expectations, reporting $7.19 billion against a forecast of $7.12 billion. UBS maintained its Sell rating on Paramount Global, citing weaker box office performance and revised its second-quarter revenue forecast to flat growth. Meanwhile, Guggenheim retained a Buy rating, despite adjusting estimates due to the underperformance of the latest Mission: Impossible film. Paramount Global announced a quarterly cash dividend of $0.05 per share for its Class A and Class B Common Stock, payable on July 1, 2025. The company continues to project domestic profitability for Paramount+ in 2025, driven by a significant increase in subscribers, reaching 79 million, an 11% year-over-year growth. UBS and Guggenheim both adjusted their future EBITDA forecasts, with UBS projecting a decline and Guggenheim citing improvements in the Direct-to-Consumer segment. These recent developments highlight Paramount Global’s strategic focus on cost efficiencies and content investments amidst ongoing market challenges.

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