Cablevision Returns to Buying Binge

Like Bill Bennett at a video poker machine, Cablevision (CVC Quote) is having a tough time keeping its money inside its wallet.

The New York-based cable operator, which has spent the last few months trying to convince Wall Street it won't spend beyond its means, said Monday it would spend $500 million -- at least half of that in cash -- to buy out Metro-Goldwyn-Mayer's (MGM Quote) minority stake in three of Cablevision's national program networks.

The deal for AMC, IFC and WE: Women's Entertainment appears to position both Cablevision and MGM for their separate attempts to get a piece of the U.S. entertainment assets put on the auction block by Vivendi Universal (V Quote).

But the news that Cablevision is a buyer instead of a seller -- even in a deal that analysts say favors Cablevision -- indicates once again that the Dolan family that runs Cablevision is not easily scared off its leveraged ways. Though the company's stock has been on a healthy tear lately, having more than quadrupled off last year's lows as liquidity worries eased, any indication of slippage could bring those worries to the fore again. ...