Cablevision delays Voom shutdown
From Crain's New York Business
March 03, 2005
Cablevision delays Voom shutdown
Cablevision Systems Corp. said it would delay shutting down its money-losing Voom satellite service to allow Cablevision Chairman Charles Dolan more time to come up with an acceptable offer for the business.
On Monday, the company said that a letter of intent between Cablevision and Voom HD, a private company created by Charles Dolan, had expired, and that it planned to shutdown the service over the next 30 days. According to a regulatory filing made on Thursday, he now has until March 7 to come up with a plan.
Shares of the Bethpage, L.I.-based cable and entertainment company fell as much as 7.4%, to $28, in morning trading on Thursday. The stock decline comes one day after Charles Dolan, replaced three directors.
In addition, Cablevision revealed in its regulatory filing that the Securities and Exchange Commission is conducting an "informal inquiry" into trading in the companies securities. The SEC is seeking information related to Cablevision's December announcement that it had cancelled plans to spin off its satellite business and that it would sell some assets to EchoStar.
Late Wednesday, Mr. Dolan, who controls a majority of Class B Cablevision stock, said he had replaced three directors and named a fourth to replace the late John Tatta. The new directors are Rand Araskog, the former chairman and chief executive of ITT Corp.; Frank Biondi, former president and CEO of Viacom Inc.; John Malone, chairman of Liberty Media Corp.; and Leonard Tow, former chairman and CEO of Century Communications Corp.
Departing from the board are William Bell and Sheila Mahony, both of whom recently retired as officers of Cablevision, and investment banker Steven Rattner. In addition, Mr. Dolan said he plans to ask the board to increase its size so he could get his son-in-law, Brian Sweeney, elected.
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