This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Cablevision: Take-Out Target?

BETHPAGE, N.Y. ( TheStreet) -- The sudden departure of Chief Operating Officer Tom Rutledge at Cablevision (CVC - Get Report) has analysts wondering if the company is a buyout target in the coming months.

Several analysts believe that with the highly regarded Rutledge's exit, the company could be a takeover target, as the Dolan family may seek an exit strategy in the coming months. Comcast (CMCSA - Get Report) and Time Warner Cable (TWC - Get Report) are two of the most logical buyers, according to Bernstein Research.

In a research note, Bernstein Research's Craig Moffett wrote, "TWC and Comcast could team up and divide the assets, as they did with Adelphia (TWC in that scenario would take New York City, Rockland, Westchester, and Long Island, and Comcast would take Northern New Jersey and Conneticut), but that sure wouldn't generate much of a bidding war." He rates shares of Cablevision at market perform with a $20 price target.

Deutsche Bank analyst Douglas Mitchelson noted that Rutledge has helped drive the strongest penetration and ARPUs (average revenue per user) in the industry, which could potentially be attractive to a potential bidder.

Rutledge has a one-year no compete clause in his contract, and according to a Reuters article, there is speculation he might join rival Charter Communications (CHTR).

Cablevision's video, broadband, and voice penetration are all significantly higher than the sector average. The company is generating $152 per month in revenue from basic video services, 14% higher than the $133 average, according to Mitchelson's note.

Mitchelson has a buy rating but lowered his price target to $20 from $26 on the news.

Evercore Partners analyst Bryan Kraft, who has an underweight rating on shares, wrote that although a decision to sell the company may not happen immediately, it does leave the door "more open" than it was before the announcement.

Cablevision shares were selling off Friday, down 10.5% at $12.46 in midafternoon trading on 10 times the average daily volume.

-- Written by Chris Ciaccia in New York

>To follow the writer on Twitter, go to http://twitter.com/commodity_bull.

>To submit a news tip, send an email to: tips@thestreet.com

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
CMCSA $55.94 0.00%
CVC $18.08 0.00%
TWC $147.28 0.00%
VZ $48.56 0.00%
AAPL $123.25 0.00%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs