Raymond James Financial Inc. (NYSE: RJF) analyst Simon Leopold has downgraded Arris Group Inc. (Nasdaq: ARRS) stock from "strong buy" to "outperform" over concerns that the cable gear maker's near-term expectations, particularly for the fourth quarter of 2012, may be a "bit high" and that shares have already neared his target price of US$15. Leopold is worried that demand for cable modem termination systems (CMTSs) may slow as customers set their sights on the company's new E6000, a Converged Cable Access Platform (CCAP) device that combines CMTS and edge QAM functions. However, he believes cable operator concerns about Google (Nasdaq: GOOG)'s control of Motorola Mobility LLC 's cable business could provide a tailwind for the vendor.
A $2 billion cash infusion that's tied to a proposed $6.6 billion buyout of Suddenlink Communications by two investment firms and three MSO execs will enable the company to pursue acquisitions, Suddenlink Chairman and CEO Jerry Kent told Multichannel News. A Suddenlink spokesman confirmed that Kent, company COO Tom McMillin and CFO Mary Meduski are among the execs poised to take a minority stake in Suddenlink when the buyout closes. (See CEO Joins $6.6B Bid for Suddenlink .)
DirecTV Group Inc. (NYSE: DTV) subs again have access to networks such as Nickelodeon, MTV and Comedy Central after the satellite TV giant and Viacom Inc. (NYSE: VIA) announced a new carriage deal on Friday. Viacom pulled 17 channels from DirecTV on July 10 after the two were unable to reach a new deal before the old one lapsed. The new deal includes a TV Everywhere component, but not carriage of the Viacom-backed EPIX premium movie channel, which has been a sticking point during the testy negotiations.
Dish Network LLC (Nasdaq: DISH) lost 10,000 net subscribers in the second quarter, much better than the 115,000 to 119,000 subscriber losses expected by some analysts, Bloomberg reports, citing a regulatory filing. Dish reports its full second-quarter results next month.