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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Cablevision Won't Get Rid of James Dolan That Easy

Stocks in this article: CVCMSGTWCVZTCMCSAAMCX

In addition, competition issues holding up over many blockbuster mergers in 2011 may make potential bidders more wary of antitrust authorities, potentially precluding bids from some large and emerging "triple play" package players.

Nevertheless, fostering competition against Comcast may even predispose regulators to a combination with an equally large player like Verizon or Time Warner Cable. However, Verizon is already a dominant player in the New York metro market where it's FiOS packages are challenging Cablevision's market share and overlap with 40% of subscribers. Added regional concentration with a Verizon tie-up and lessened competition would likely be unappealing to antitrust regulators.

For national wireless cellular carriers who also offer cable and broadband services a different set of issues emerge. Any potential non-New York centric national carrier interest for cable and broadband services from AT&T (T) or T-Mobile also is unlikely. Both are currently locked in a heated antitrust battle with the Department of Justice on their $39 billion merger.

However, in the long term, a Time Warner Cable bid seems most likely if the Dolans were to throw in the towel. Time Warner Cable currently operates in some of the New York and New Jersey areas where Cablevision has a small presence. Cablevision's presence in New York City, Long Island and Connecticut would be attractive to draw out savings on expenses like marketing and infrastructure.

"Despite market concentration with Time Warner Cable's Manhattan and Queens plant, the regulators would not block a deal given the considerable continued size gap to Comcast and more competitive video market and high service data markets," says Harrigan of Wunderlich Securities in an emailed note.

Ultimately, it doesn't seem likely that in the near-term, a strategic acquirer would come in for Cablevision -- especially considering the Dolan's past and the only handful of potential bidders. Price, competitive pressures and antitrust concerns may make a Cablevision sale unlikely in the near term.

-- Written by Antoine Gara in New York

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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