Cablevision Execs Grab Voom
Cablevision (CVC) said Thursday night it was selling what remains of its satellite business to an investment group including Chuck Dolan, the cable operator's chairman.
The tentative agreement could breathe new life into Cablevision's young and struggling satellite service, Voom. Cablevision's board -- reportedly over Dolan's protestations -- voted last month to shut down the service and sell a key asset, a satellite, to Dish Network operator EchoStar Communications (DISH).
Under Thursday's agreement, the new Dolan group will buy assets including Cablevision's interest in 21 high definition programming channels featured on Voom, various satellite and wireless licenses, and existing customer agreements.
Cablevision says the proposed transaction "will allow it to avoid various shutdown costs and other liabilities of the VOOM service which it would have incurred had it proceeded with its original plan to shut down the service." Terms weren't disclosed.The transaction is contingent upon the approval by Cablevision's board of a definitive agreement, which the parties apparently hope to reach by the end of the month. The Dolan group, which includes Chuck Dolan's son Tom, another Cablevision executive, says it is in the process of securing financing to support the ongoing operations of the business. Cablevision's stock, which rebounded last month on the news that Cablevision would be shedding Voom, rose 2 cents Thursday to close at $26.59.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV