AT&T (NYSE:T) rose at midday after the U.S. mobile-phone carrier reached a multi-year agreement with Viacom (NASDAQ:VIAB) for the media giant to continue providing programming to AT&T 's U-verse TV and DirecTV U.S. subscribers.
Shares AT&Tgained 2.3% to $33.40 at 11:47 a.m. in New York, paring this year’s loss to 5.5%. Shares of Viacom inched up 1.6% to $45.03. The stock has lost 40% this year.
Financial terms of the pact with Viacom weren’t announced, but in its statement on Monday, AT&T said the agreement entitles AT&T’s satellite and IPTV platforms to the “best deal in the industry” for Viacom’s TV brands.
Viacom has been facing mounting concerns that pay-TV providers will decide they can do without its bundle of channels, which include Comedy Central, Nickelodeon, MTV and smaller ones like TV Land and Spike.
AT&T closed its $49bn acquisition of DirecTV in July after more than a year of regulatory review, a combination that created the largest U.S. pay-television company.