Walt Disney and Charter Communications have settled their cable dispute
After pressure from customers, particularly during recent sporting events such as the U.S. Open Tennis Championship, Walt Disney Co (NYSE:DIS) and Charter Communications Inc (NASDAQ:CHTR) have reached an agreement to return ESPN, ABC, and other Disney channels to Spectrum. The blackout on these channels, which started Aug. 31, appears to be conveniently ending right before ‘Monday Night Football.’
Analysts have been keeping a close eye on the deal, with some even mentioning how it could determine the future of television streaming. Co-chairman of Disney Entertainment Dana Walden said today that “it’s an innovative and first-of-its-kind agreement and it took some time to iron out where the greatest value was for each company.”
At last glance, Charter Communications stock was up 3.3% to trade at $436.51, while Disney stock moves 1.1% higher at $82.47. CHTR isn’t too far off from its recent Aug. 29 52-week high of $452.25, while DIS moves further from its Sep. 7 three-year low of $79.75.
Options bulls are targeting DIS after the news, with 221,000 calls exchanged so far, volume that’s double the intraday average amount. The September 85 call is the most active contract, with new positions being bought to open.