After Disney (DIS) and Charter (CHTR) issued a press release announcing that the companies have reached a “transformative, multi-year distribution agreement” that ends the blackout that began September 1 and restores the majority of Disney’s programming to Charter’s roughly 15M subscribers, Guggenheim analyst Michael Morris notes that Charter will no longer carry eight networks that the firm estimate combined to represent about 11% of Disney’s affiliate revenue per subscriber fees. However, the firm believes that the deal reflects a trade-off from linear economics, but “represents an overall positive result across Disney’s total company economics.” Guggenheim keeps a Buy rating on Disney shares.
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