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Here's why Altice USA just dropped $200 million on streaming video start-up Cheddar

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Altice USA has agreed to buy Cheddar for $200 million, betting founder Jon Steinberg can continue to expand the company's news offerings.

Rather than collecting fees from providers, the company has made money through advertising and is on pace to double its revenue to about $50 million this year, Goei said.

Goei said he was impressed that Steinberg took a niche idea — business news for young people — and grew it into a respectable business through entrepreneurial force.

The deal for Cheddar was all in cash, though Steinberg, who owns a significant stake, will use half of his proceeds to buy Altice USA stock, Goei said. Steinberg couldn't immediately be reached for comment. Cheddar raised $54 million in venture funding from investors including AT&T, Comcast Ventures (owned by CNBC parent

 

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Altice USA Buys Streaming-Video Network Cheddar for $200 MillionCable operator Altice USA agreed to acquire streaming-video network Cheddar for $200 million, a deal expected to raise the profile of the company’s news division.
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Cable TV company Altice USA is buying the streaming-news network Cheddar for $200 millionThe video-news startup founded by former BuzzFeed executive Jon Steinberg agreed to be acquired by telecom Altice USA for $200 million, the companies announced on Tuesday.
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