CBS Corporation (CBS - Free Report) announced the acquisition of the remaining 50% stake in TV Guide Digital, including the TVGuide.com and TV Guide Mobile properties from Lions Gate Entertainment Corp. (LGF - Free Report) . 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's (JPM - Free Report) 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," ''Ugly Betty" and old movies, is now available in more than 80 million homes.
As per the agreement, TVGuide.com and the TV Guide Mobile apps will be a part of CBS Interactive's Technology, Games and Lifestyle group.
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 Amazon.com Inc. (AMZN - Free Report) that extends the latter’s archive of television shows and films currently available on its streaming video site, Amazon Prime Instant Video.
Currently, CBS holds a Zacks Rank #2 (Buy).