YouTube and Fox have reached a new distribution agreement that will keep Fox News, Fox Sports and other Fox-owned channels on YouTube TV, averting a potential blackout for millions of subscribers.
Google, Fox Seal New Carriage Deal
YouTube, a subsidiary of Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, confirmed Thursday that it struck a deal with Fox Corp. (NASDAQ:FOXA) after tense negotiations over carriage fees.
The companies did not disclose financial terms. The agreement ensures continued access to Fox's portfolio, which also includes Fox Business and local affiliates, for YouTube TV's more than eight million subscribers.
FCC Chair Weighed In As Talks Intensified
The dispute drew attention earlier this week from Federal Communications Commission Chairman Brendan Carr, who warned that removing Fox channels ahead of major sporting events like "this week's Big Game: Texas @ Ohio State" would be "a terrible outcome." Carr urged Google on X, formerly Twitter, to "get a deal done."
Following the latest development, he again took to social media and said, "Pleased that Google and Fox have now reached a deal. This is great news for college football fans and avoids blackouts."
Streaming Disputes On The Rise
This is the latest high-profile carriage standoff in the streaming industry. In February, YouTube TV narrowly avoided losing CBS, Nickelodeon and other Paramount Global (NASDAQ:PARA) (NASDAQ:PARAA) channels after similar fee negotiations.
Alphabet remains well-positioned financially, reporting second-quarter revenue of $96.43 billion, driven by Google Search, YouTube Ads and Google Cloud. The company ended the quarter with $95.15 billion in cash and securities.
Price Action: Alphabet Inc.'s Class A shares climbed 2.01% on Thursday, while Class C shares rose 2%, according to Benzinga Pro.
Benzinga's Edge Stock Rankings indicate that GOOGL maintains a strong upward trend across short, medium and long-term periods. Additional performance details can be found here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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