Viacom and T-Mobile Reach Major Content Deal

Viacom and T-Mobile Reach Major Content Deal

Companies to build disruptive mobile TV options

April 03, 2019 08:02 AM Eastern Daylight Time

BELLEVUE, Wash. & NEW YORK--T-Mobile (NASDAQ: TMUS) and Viacom Inc. (NASDAQ: VIAB, VIA) today announced that the companies have entered into a significant content distribution agreement. Under terms of the deal, Viacom’s portfolio of leading brands — including Nickelodeon, MTV, Comedy Central, BET, Paramount and more — will play a key role in T-Mobile’s delivery of compelling new mobile video services to consumers later this year. The deal enables the Un-carrier to bring together live linear feeds of Viacom channels as well as a broad range of on-demand content to serve T-Mobile’s nearly 80 million customers.

“Viacom represents the best of the best, most-popular brands on cable, so they are an amazing partner for us!” said John Legere, CEO of T-Mobile. “TV programming has never been better, but consumers are fed up with rising costs, hidden fees, lousy customer service, non-stop BS. And Macgyvering together a bunch of subscriptions, apps and dongles isn’t much better. That’s why T-Mobile is on a mission to give consumers a better way to watch what they want, when they want.”

“We are thrilled to join forces with T-Mobile on a new entertainment service that represents an important evolution in how audiences consume our content,” said Bob Bakish, Viacom President and CEO. “Today’s landmark announcement marks a major step forward in our strategy to accelerate the presence of our brands on mobile and other next-generation platforms, and we’re so excited to partner with T-Mobile to provide millions of subscribers with access to our networks and more choice in a new service that will be unlike any other in the market.”

Last year, T-Mobile acquired next generation cable TV disruptor Layer3 TV, and with that team, talent and technology, the company has been at work readying its first wave of home and mobile TV offerings. In recent months, T-Mobile executives have shared some of the company’s plans to launch first with an in-home TV solution, designed to replace cable for the 5G era, and longer term, executives say the company will introduce mobile TV services beginning with Viacom as a cornerstone launch partner.

Forward-Looking Statements

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including information concerning T-Mobile US, Inc.’s future results of operations, are forward-looking statements. These forward-looking statements are generally identified by the words “plan,” “anticipate,” “expect,” “believe,” “intend,” “may,” “could,” or similar expressions. Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties and may cause actual results to differ materially from the forward-looking statements. Important factors that could affect future results and cause those results to differ materially from those expressed in the forward-looking statements include, among others, the following: the failure to obtain, or delays in obtaining, required regulatory approvals for the merger contemplated under the Business Combination Agreement with Sprint Corporation (“Sprint”), and related transactions (collectively, the “Transactions”) and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the Transactions, or the failure to satisfy any of the other conditions to the Transactions on a timely basis or at all; the occurrence of events that may give rise to a right of one or both of the parties to terminate the Business Combination Agreement with Sprint; adverse effects on the market price of our common stock or on our or Sprint’s operating results because of a failure to complete the Transactions in the anticipated timeframe or at all; inability to obtain the financing contemplated to be obtained in connection with the Transactions on the expected terms or timing or at all; the ability of us, Sprint and the combined company to make payments on debt or to repay existing or future indebtedness when due or to comply with the covenants contained therein; adverse changes in the ratings of our or Sprint’s debt securities or adverse conditions in the credit markets; negative effects of the announcement, pendency or consummation of the Transactions on the market price of our common stock and on our or Sprint’s operating results, including as a result of changes in key customer, supplier, employee or other business relationships; significant costs related to the Transactions, including financing costs, and unknown liabilities of Sprint or that may arise; failure to realize the expected benefits and synergies of the Transactions in the expected timeframes or at all; costs or difficulties related to the integration of Sprint’s network and operations into our network and operations; the risk of litigation or regulatory actions related to the Transactions; the inability of us, Sprint or the combined company to retain and hire key personnel; the risk that certain contractual restrictions contained in the Business Combination Agreement with Sprint during the pendency of the Transactions could adversely affect our or Sprint’s ability to pursue business opportunities or strategic transactions; adverse economic or political conditions in the U.S. and international markets; competition, industry consolidation, and changes in the market for wireless services, which could negatively affect our ability to attract and retain customers; the effects of any future merger, investment, or acquisition involving us, as well as the effects of mergers, investments, or acquisitions in the technology, media and telecommunications industry; challenges in implementing our business strategies or funding our operations, including payment for additional spectrum or network upgrades; the possibility that we may be unable to renew our spectrum licenses on attractive terms or acquire new spectrum licenses at reasonable costs and terms; difficulties in managing growth in wireless data services, including network quality; material changes in available technology and the effects of such changes, including product substitutions and deployment costs and performance; the timing, scope and financial impact of our deployment of advanced network and business technologies; the impact on our networks and business from major technology equipment failures; breaches of our and/or our third-party vendors’ networks, information technology and data security, resulting in unauthorized access to customer confidential information; natural disasters, terrorist attacks or similar incidents; unfavorable outcomes of existing or future litigation; any changes in the regulatory environments in which we operate, including any increase in restrictions on the ability to operate our networks and data privacy laws; any disruption or failure of our third parties’ or key suppliers’ provisioning of products or services; material adverse changes in labor matters, including labor campaigns, negotiations or additional organizing activity, and any resulting financial, operational and/or reputational impact; changes in accounting assumptions that regulatory agencies, including the Securities and Exchange Commission (“SEC”), may require, which could result in an impact on earnings; changes in tax laws, regulations and existing standards and the resolution of disputes with any taxing jurisdictions; the possibility that the reset process under our trademark license with Deutsche Telekom AG results in changes to the royalty rates for our trademarks; the possibility that we may be unable to adequately protect our intellectual property rights or be accused of infringing the intellectual property of others; our business, investor confidence in our financial results and stock price may be adversely affected if our internal controls are not effective; and interests of a majority stockholder may differ from the interests of other stockholders. You should not place undue reliance on these forward-looking statements. We do not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

About Viacom

Viacom creates entertainment experiences that drive conversation and culture around the world. Through television, film, digital media, live events, merchandise and solutions, our brands connect with diverse, young and young at heart audiences in more than 180 countries.

For more information on Viacom and its businesses, visit www.viacom.com. Keep up with Viacom news by following us on Twitter (twitter.com/viacom), Facebook (facebook.com/viacom) and LinkedIn (linkedin.com/company/viacom).

About T-Mobile US, Inc.

As America’s Un-carrier, T-Mobile US, Inc. (NASDAQ: TMUS) is redefining the way consumers and businesses buy wireless services through leading product and service innovation. Our advanced nationwide 4G LTE network delivers outstanding wireless experiences to 79.7 million customers who are unwilling to compromise on quality and value. Based in Bellevue, Washington, T-Mobile US provides services through its subsidiaries and operates its flagship brands, T-Mobile and Metro by T-Mobile. For more information, please visit http://www.t-mobile.com.

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From Bloomberg:

Viacom Becomes First Media Partner in T-Mobile's New TV Service

T-Mobile US Inc. said it reached an agreement to stream live Viacom Inc. channels like MTV, Comedy Central and Nickelodeon as well as offer on-demand shows on its coming wireless TV service.

Viacom is a “cornerstone launch partner,” T-Mobile said in a statement Wednesday. The third-largest U.S. mobile service has been planning for more than a year to start what it calls a “disruptive TV service,” the launch of which was delayed from last year due to the project’s complexity.

“T-Mobile is on a mission to give consumers a better way to watch what they want, when they want,” T-Mobile Chief Executive Officer John Legere said in the statement. The company didn’t disclose any details of the service but said it would launch later this year.

T-Mobile is awaiting approval of its $26.5 billion takeover of Sprint Corp. The companies have said the combination would help create a new, stronger wireless company with an in-home TV service that can challenge larger rivals, including cable companies Comcast Corp. and Charter Communications Inc.

“Today’s landmark announcement marks a major step forward in our strategy to accelerate the presence of our brands on mobile and other next-generation platforms,” Viacom CEO Bob Bakish said in the statement.

When the product is ready, T-Mobile TV will be entering a crowded field of online TV services including AT&T Inc.’s DirecTV Now, Google’s YouTube TV, Dish Network Corp.’s Sling TV and Walt Disney Co.’s Hulu.

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More Nick: Nickelodeon Embarks on New Direction with its Biggest, Most Wide-Ranging Content Slate Ever!

H/T: Seeking Alpha.

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