On Wednesday morning, Viacom (VIAB) and T-Mobile (TMUS) announced what the press release called "a significant content distribution agreement." As part of the deal, Viacom's popular portfolio of brands -which include MTV, Nickelodeon, Comedy Central, BET, Paramount, and more - is expected to play a major role in T-Mobile's push to create a new mobile video service for consumers. This deal will bring Viacom's live linear channels, as well as on-demand content, to T-Mobile's nearly 80 million customers. According to the press release, T-Mobile executives believe Viacom is the cornerstone launch partner of a longer-term mobile TV services strategy. VIAB shares are reacting favorable to the news and are trading higher in early trading at the time this was written.

"We are thrilled to join forces with T-Mobile on a new entertainment service that represents an important evolution in how audiences consume our content," Viacom CEO Bob Bakish said in a press release. "Today's landmark announcement marks a major step forward in our strategy to accelerate the presence of our brands on mobile and other next-generation platforms, and we're so excited to partner with T-Mobile to provide millions of subscribers with access to our networks and more choice in a new service that will be unlike any other in the market."

Consumers want Viacom content, and carriers cannot risk customer churn by dropping them from their services. AT&T recognized this when it renewed its contract with Viacom last week. Meanwhile, this deal will keep momentum going in Viacom's push into the mobile space, where its brands have gained traction in International markets as of late.

Bottom line: This announcement is another example of how Viacom's portfolio is underappreciated by the market. Deals like these represent one path to win with VIAB, with the other being a potential merger with CBS (CBS) .