Breaking News from CNBC’s David Faber: Disney, Charter Reach Carriage Agreement

Breaking News from CNBC’s David Faber: Microsoft has offered to make small divestiture to meet objections of CMA – Sources

WHEN: Today, Monday, September 11, 2023

WHERE: CNBC’s “Squawk on the Street”

Following is the unofficial transcript of breaking news from CNBC’s David Faber on “Squawk on the Street” (M-F, 9AM-12PM ET) today, Monday, September 11. Following is a link to video on   

All references must be sourced to CNBC.

DAVID FABER: Yeah, well last hour we told you over an hour ago that the two sides were near a transaction that would return Disney’s networks to Charter video subscribers. We can now tell you that a deal has been reached. I don’t have a press release as yet but my understanding based on a number of conversations is that in fact, they have reached that deal but again, over an hour ago, we told you was near. All the stocks in question rising on our initial report. What we do or at least can sort of ascertain based again on people familiar with the situation is that Disney will get essentially a marketplace increase that had been what it was seeking from Charter but Charter had also said hey, we want our subscribers to also get access to Disney+ and ESPN+ at a reduced rate or actually, as part of the package. They didn’t get that but my understanding is it will include the ability for Charter subscribers to get Disney+ at a reduced price, a discount, a wholesale price wherever you may want to call it. Is it a win win? Perhaps. It restores of course Disney’s channels including ESPN to Charter video subscribers ahead of tonight’s big Monday Night Football game. You know Aaron Rodgers was not a part of the, of the deal making here but he certainly it seemed to loom large. We pointed out many times what distinguished this particular fight was the fact that Charter seemed very much willing to allow it to go on without and its subscribers to go on without access to Disney’s channels. Obviously ESPN, ABC, FX, Nat Geo and on from there because the video business doesn’t make a lot of money and it felt like there was a diminution of overall quality that it was paying more and more for for linear cable content. And therefore it was entitled, the subscribers were entitled to actually get the direct to consumer offerings that it felt it was helping to subsidize with those increased sub fees. So an important moment here, Sara, in terms of these two sides reaching an agreement. When we do see the press release we’ll get specifics on the actual deal terms perhaps my guess is they will both pose it as a win on both sides and the markets treating it that way right now.

SARA EISEN: The stocks are off the initial highs when you first reported the rumor. I mean—

FABER: Not the rumors that a deal was near.

EISEN: The deal was near.

FABER: Yeah, we don’t report rumors.

EISEN: We don’t report rumors, you especially.

FABER: Thank you.

EISEN: It was never a typical, and Charter said this, carriage fee disagreement and so you’re saying that deal reflects that too with the addition of Disney+?

FABER: Correct the the inclusion of Disney+ at some sort of reduced offering rate or discount would be a significant moment here for sort of the relationship between the providers of content and the distributors of content. That said many people may have already those sports fans out there with Charter service with, Spectrum service may already have gone and taken a look at a virtual MVPD whether it be a YouTube TV, the largest out there, or Hulu itself owned by Disney 66%, Hulu live, or even Fubo which had been benefiting from an influx of potential subscribers. Spectrum actually had said to its subscribers, hey, here’s a link to Fubo if you can’t, you know, if you need to watch the game tonight.

EISEN: Yeah, the one, the one that is selling off today. Everybody else is up. The group is up, communication services. David, thank you.

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