Shares of CBS (CBS) surged more than 4% in Tuesday morning trading after it reached a deal to restore its channels to a major cable TV provider.
After a one-month blackout, CBS channels will return to Time Warner Cable‘s (TWC) system. The deal restores the channels to viewers in Dallas, Los Angeles and New York City. Sources told Bloomberg that Time Warner had agreed to pay much higher rates to carry the channels than under previous agreements, but less than CBS had initially demanded.
The return of CBS channels comes just in time for the kickoff of the National Football League’s (NFL) season. The blackout affected more than three million subscribers. At least one analyst said the new deal looked like a victory for CBS.
Time Warner dropped CBS and its leading cable channel Showtime last month after CBS demanded an increase in carriage fees to about $2 a month, per Time Warner subscriber.
Despite the loss of millions of viewers in key markets, CBS continued to win the late-summer ratings race, powered by viewer interest in hit series like Under the Dome.
Shares Time Warner rose almost 2% in Tuesday morning trading.