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Cablevision Systems Corporation (NYSE: CVC) today announced that its board of directors has approved the leveraged spin-off of AMC Networks Inc., formerly known as Rainbow Media, to Cablevision shareholders. Following the spin-off, Cablevision Founder Charles F. Dolan will become executive chairman of the new, publicly-traded AMC Networks. Mr. Dolan will continue in his present role as chairman of Cablevision. The company announced earlier this year that current Rainbow chief executive officer Josh Sapan will become president and chief executive officer of AMC Networks.
The share distribution will occur on June 30, 2011 to Cablevision shareholders of record as of the close of business on June 16, 2011. In the distribution, each Cablevision Class A stockholder will receive one share of AMC Networks Class A common stock for every four shares of Cablevision Class A common stock they hold as of the record date. Each Cablevision Class B stockholder will receive one share of AMC Networks Class B common stock for every four shares of Cablevision Class B common stock they hold as of the record date.
Cablevision President and CEO James L. Dolan stated: “With today’s board action, we are one step closer to creating two distinct companies for investors. Rainbow today houses some of cable television’s most admired networks, while Cablevision’s portfolio of industry-leading telecommunications services and local content offerings has made it one of the nation’s leading media and telecommunications companies. We are confident that both the new AMC Networks and Cablevision will continue to build on their considerable records of achievement.” In addition to his role as Cablevision President and CEO, James Dolan will also serve on the new AMC Networks’ board of directors.
Charles Dolan, who will serve as executive chairman of the new AMC Networks, is the founder and chairman of Cablevision Systems Corporation, one of the nation’s leading telecommunications, media and entertainment companies. The company’s Rainbow Media business, which will become AMC Networks, was founded as a Cablevision subsidiary in 1980 and includes popular programming networks AMC, IFC, Sundance Channel and WE tv. Mr. Dolan also serves on the board of The Madison Square Garden Company, a former Cablevision subsidiary, which was spun-off as a separate public company in early 2010.