Cablevision Announces Structure for New Company As It Prepares for Spin Off
Thursday April 29, 5:08 pm ET
New Company, to be Named Rainbow Media Enterprises, Inc., Will Have Three Divisions: Rainbow DBS, Rainbow Programming and Rainbow Movies (Clearview Cinemas)
BETHPAGE, N.Y.--(BUSINESS WIRE)--April 29, 2004-- Cablevision Systems Corporation (NYSE:CVC - News) today announced a new structure for the company it plans to spin off later this year comprising Cablevision's satellite, national programming and movie theater businesses. The new company will operate under the name Rainbow Media Enterprises, Inc.
Rainbow Media Enterprises, Inc. will have three divisions, and will operate as a financially distinct company within Cablevision until the spin off is complete. The divisions are:
Rainbow DBS, which includes the VOOM satellite television service;
Rainbow Programming, which includes the national entertainment services AMC, WE: Women's Entertainment and IFC (The Independent Film Channel) as well as IFC Entertainment and IFC Productions; the 21 VOOM high definition channels; and Mag Rack, sportskool, World Picks and other video-on-demand services; and
The newly added Rainbow Movies, (the corporate name for the theater group that will continue to do business as Clearview Cinemas).
The company plans to file a Form 10 shortly with the Securities and Exchange Commission. The company anticipates completing the spin off after the SEC declares the Form 10 effective and once it has refinanced the existing Rainbow credit facilities. The company has received a favorable ruling from the IRS regarding the tax free status of the spin off.
Businesses remaining with Cablevision following the spin off will include its cable and telecommunications businesses; Lightpath; Madison Square Garden and its teams; Radio City Music Hall; and certain other businesses including: fuse, News 12, Metro Channels and Rainbow's interests in regional sports networks around the country. (A full list of the division of businesses is attached).
Cablevision Chairman Charles F. Dolan is expected to serve as chairman of Rainbow Media Enterprises, following the spin off. Thomas C. Dolan, who currently serves as a board member, executive vice president and chief information officer (CIO) of Cablevision, will serve as Rainbow Media Enterprises' chief executive officer. William J. Bell, who will continue to serve as vice chairman of Cablevision through the end of the year, will also serve, prior to the spin off, as Rainbow Media Enterprises' chief financial officer, while Rainbow Media Enterprises conducts a search for a permanent CFO. Josh Sapan will continue to lead Rainbow's national programming efforts as president and CEO of Rainbow Programming. Mickey Alpert will continue as COO of Rainbow DBS, and Morten Gotterup will continue as senior vice president and general manager of Clearview Cinemas.
Charles Dolan, along with Tom Dolan and Josh Sapan, are also expected to become members of the Rainbow Media Enterprises board of directors after the spin off.
Charles Dolan said: "We have made significant progress in the implementation of our plan to create two distinct companies for Cablevision shareholders, each with separate funding and management, defined business strategies and clear investment characteristics. We are taking another step forward today as this reorganization begins to put in place the structure essential for the continued growth and development of the Rainbow Media Enterprises businesses.
"We also have assembled an outstanding management team to continue building these businesses. Tom, as director and senior executive, has played a key role in Cablevision's success for many years. His proven track record as a manager and executive, together with his strong technical expertise, make him well suited to lead this new business. We are also fortunate that Josh Sapan, one of the industry's leading programmers, will continue to operate Rainbow Programming, and we are gratified as well that Josh has agreed to join the board of directors of Rainbow Media Enterprises. And, leading up to the spin off, Rainbow Media Enterprises will benefit as well from Bill Bell's leadership and substantial experience with the financial community."
Thomas Dolan, 51, has been a director of Cablevision since 1998 and has served as executive vice president of Cablevision since October 2001 and as chief information officer since 1994. In the latter capacity, he oversaw Cablevision's corporate information systems function, which is responsible for maintaining more than 150 existing systems and applications as well as meeting all new systems and applications needs throughout the company. Prior to the post of CIO, Thomas Dolan served as general manager at Cablevision's East End Long Island cable television system. Before joining Cablevision, he spent seven years as a large systems customer engineer with IBM.
Cablevision Systems Corporation is one of the nation's leading entertainment, media and telecommunications companies. In addition to its broadband, cable, satellite, Internet and telephone offerings, the company owns and operates Rainbow Media Holdings LLC and its networks; Madison Square Garden and its teams; and Clearview Cinemas. In addition, Cablevision operates New York's famed Radio City Music Hall. Additional information about Cablevision Systems Corporation is available on the Web at www.cablevision.com.
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results or developments may differ materially from those in the forward-looking statements as a result of various factors, including financial community and rating agency perceptions of the company and its business, operations, financial condition and the industry in which it operates and the factors described in the company's filings with the Securities and Exchange Commission, including the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained therein. The company disclaims any obligation to update the forward-looking statements contained herein.
Thursday April 29, 5:08 pm ET
New Company, to be Named Rainbow Media Enterprises, Inc., Will Have Three Divisions: Rainbow DBS, Rainbow Programming and Rainbow Movies (Clearview Cinemas)
BETHPAGE, N.Y.--(BUSINESS WIRE)--April 29, 2004-- Cablevision Systems Corporation (NYSE:CVC - News) today announced a new structure for the company it plans to spin off later this year comprising Cablevision's satellite, national programming and movie theater businesses. The new company will operate under the name Rainbow Media Enterprises, Inc.
Rainbow Media Enterprises, Inc. will have three divisions, and will operate as a financially distinct company within Cablevision until the spin off is complete. The divisions are:
Rainbow DBS, which includes the VOOM satellite television service;
Rainbow Programming, which includes the national entertainment services AMC, WE: Women's Entertainment and IFC (The Independent Film Channel) as well as IFC Entertainment and IFC Productions; the 21 VOOM high definition channels; and Mag Rack, sportskool, World Picks and other video-on-demand services; and
The newly added Rainbow Movies, (the corporate name for the theater group that will continue to do business as Clearview Cinemas).
The company plans to file a Form 10 shortly with the Securities and Exchange Commission. The company anticipates completing the spin off after the SEC declares the Form 10 effective and once it has refinanced the existing Rainbow credit facilities. The company has received a favorable ruling from the IRS regarding the tax free status of the spin off.
Businesses remaining with Cablevision following the spin off will include its cable and telecommunications businesses; Lightpath; Madison Square Garden and its teams; Radio City Music Hall; and certain other businesses including: fuse, News 12, Metro Channels and Rainbow's interests in regional sports networks around the country. (A full list of the division of businesses is attached).
Cablevision Chairman Charles F. Dolan is expected to serve as chairman of Rainbow Media Enterprises, following the spin off. Thomas C. Dolan, who currently serves as a board member, executive vice president and chief information officer (CIO) of Cablevision, will serve as Rainbow Media Enterprises' chief executive officer. William J. Bell, who will continue to serve as vice chairman of Cablevision through the end of the year, will also serve, prior to the spin off, as Rainbow Media Enterprises' chief financial officer, while Rainbow Media Enterprises conducts a search for a permanent CFO. Josh Sapan will continue to lead Rainbow's national programming efforts as president and CEO of Rainbow Programming. Mickey Alpert will continue as COO of Rainbow DBS, and Morten Gotterup will continue as senior vice president and general manager of Clearview Cinemas.
Charles Dolan, along with Tom Dolan and Josh Sapan, are also expected to become members of the Rainbow Media Enterprises board of directors after the spin off.
Charles Dolan said: "We have made significant progress in the implementation of our plan to create two distinct companies for Cablevision shareholders, each with separate funding and management, defined business strategies and clear investment characteristics. We are taking another step forward today as this reorganization begins to put in place the structure essential for the continued growth and development of the Rainbow Media Enterprises businesses.
"We also have assembled an outstanding management team to continue building these businesses. Tom, as director and senior executive, has played a key role in Cablevision's success for many years. His proven track record as a manager and executive, together with his strong technical expertise, make him well suited to lead this new business. We are also fortunate that Josh Sapan, one of the industry's leading programmers, will continue to operate Rainbow Programming, and we are gratified as well that Josh has agreed to join the board of directors of Rainbow Media Enterprises. And, leading up to the spin off, Rainbow Media Enterprises will benefit as well from Bill Bell's leadership and substantial experience with the financial community."
Thomas Dolan, 51, has been a director of Cablevision since 1998 and has served as executive vice president of Cablevision since October 2001 and as chief information officer since 1994. In the latter capacity, he oversaw Cablevision's corporate information systems function, which is responsible for maintaining more than 150 existing systems and applications as well as meeting all new systems and applications needs throughout the company. Prior to the post of CIO, Thomas Dolan served as general manager at Cablevision's East End Long Island cable television system. Before joining Cablevision, he spent seven years as a large systems customer engineer with IBM.
Cablevision Systems Corporation is one of the nation's leading entertainment, media and telecommunications companies. In addition to its broadband, cable, satellite, Internet and telephone offerings, the company owns and operates Rainbow Media Holdings LLC and its networks; Madison Square Garden and its teams; and Clearview Cinemas. In addition, Cablevision operates New York's famed Radio City Music Hall. Additional information about Cablevision Systems Corporation is available on the Web at www.cablevision.com.
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results or developments may differ materially from those in the forward-looking statements as a result of various factors, including financial community and rating agency perceptions of the company and its business, operations, financial condition and the industry in which it operates and the factors described in the company's filings with the Securities and Exchange Commission, including the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained therein. The company disclaims any obligation to update the forward-looking statements contained herein.