Brand new WSJ Voom article
- Thread starter klen
- Start date
- Latest activity Latest activity:
- Replies 9
- Views 3K
-
WELCOME TO THE NEW SERVER!
If you are seeing this you are on our new server WELCOME HOME!
While the new server is online Scott is still working on the backend including the cachine. But the site is usable while the work is being completes!
Thank you for your patience and again WELCOME HOME!
CLICK THE X IN THE TOP RIGHT CORNER OF THE BOX TO DISMISS THIS MESSAGE
klen said:
No subscription here. But I got the following sentence from its website:
"Voom's future was uncertain after the two Dolan family members who lead Cablevision released conflicting memos to employees about whether the satellite business would continue".
Latest
this a WSJ article just off the presses
Voom's Future Is Uncertain
Amid Conflicting Statements
By PETER GRANT
Staff Reporter of THE WALL STREET JOURNAL
March 1, 2005 1:37 p.m.
Confusion swirled Tuesday over the future of the Voom satellite service, owned by Cablevision Systems Corp., as Cablevision's battling chairman and chief executive put out conflicting memos to employees about whether the satellite business would continue.
Cablevision chief executive James Dolan told Voom employees that the company's board has ordered that Voom will be closed. The memo states that Cablevision will help Voom employees find work in other parts of the company.
But another memo sent to Voom employees by Charles Dolan, Cabelvision's chairman and James Dolan's father, states that "members of the Dolan family remain committed" to the business and that "financing for the purchase of Voom operations is in place."
The dueling memos are the latest sign of open warfare within the board room of Cablevision as well as the Dolan family, which built Cablevision into the country's sixth largest cable operator. Charles Dolan, the company's 78-year-old founder, has been the champion of Voom, because he believes that satellite is a more efficient way of distribution television signals than cable. But James Dolan sided with a majority of board members in January who voted to discontinue Voom and sell its only satellite to EchoStar Communications Corp.
After that humiliating defeat, Charles Dolan, and another one of his sons, Tom Dolan, formed a new company that cut a tentative deal with Cablevision to buy Voom's remaining assets. But they had until Monday to finalize that deal and they were failed to do so, triggering the conflicting memos from the two camps. Cablevision also issued a press release Monday stating that Voom would be shut down.
The fighting has produced volatility in Cablevision's stock. It has risen in recent weeks on speculation that Charles Dolan, who controls the majority of a special class of stock with super voting rights, might decide to put Cablevision on the block to raise funds to finance Voom. In early afternoon trading today, Cablevision shares were down 92 cents, or 3%, at $30.14, on news that Cablevision had stopped negotiations to sell Voom's remaining assets to Charles Dolan's new company.
Volatility in Cablevision's stock will likely continue given Charles Dolan's reluctance to throw in the towel. Analysts estimate that he would need about $400 million a year to continue financing Voom, but they doubt that he would be able to find partners willing to invest in a business that many analysts feel is not viable. His most likely source of capital would be his shares in Cablevision, valued at slightly under $1 billion.
Even if Charles Dolan agrees to pull the plug on Voom, that might stop him from selling Cablevision. "Regardless of the fate of Voom, we wonder whether irreparable harm has been done to Dolan family business relations," states Richard Greenfield, an analyst with Fulcrum Global Partners. "We believe the potential for a sale of Cablevision is becoming ever more probable."
this a WSJ article just off the presses
Voom's Future Is Uncertain
Amid Conflicting Statements
By PETER GRANT
Staff Reporter of THE WALL STREET JOURNAL
March 1, 2005 1:37 p.m.
Confusion swirled Tuesday over the future of the Voom satellite service, owned by Cablevision Systems Corp., as Cablevision's battling chairman and chief executive put out conflicting memos to employees about whether the satellite business would continue.
Cablevision chief executive James Dolan told Voom employees that the company's board has ordered that Voom will be closed. The memo states that Cablevision will help Voom employees find work in other parts of the company.
But another memo sent to Voom employees by Charles Dolan, Cabelvision's chairman and James Dolan's father, states that "members of the Dolan family remain committed" to the business and that "financing for the purchase of Voom operations is in place."
The dueling memos are the latest sign of open warfare within the board room of Cablevision as well as the Dolan family, which built Cablevision into the country's sixth largest cable operator. Charles Dolan, the company's 78-year-old founder, has been the champion of Voom, because he believes that satellite is a more efficient way of distribution television signals than cable. But James Dolan sided with a majority of board members in January who voted to discontinue Voom and sell its only satellite to EchoStar Communications Corp.
After that humiliating defeat, Charles Dolan, and another one of his sons, Tom Dolan, formed a new company that cut a tentative deal with Cablevision to buy Voom's remaining assets. But they had until Monday to finalize that deal and they were failed to do so, triggering the conflicting memos from the two camps. Cablevision also issued a press release Monday stating that Voom would be shut down.
The fighting has produced volatility in Cablevision's stock. It has risen in recent weeks on speculation that Charles Dolan, who controls the majority of a special class of stock with super voting rights, might decide to put Cablevision on the block to raise funds to finance Voom. In early afternoon trading today, Cablevision shares were down 92 cents, or 3%, at $30.14, on news that Cablevision had stopped negotiations to sell Voom's remaining assets to Charles Dolan's new company.
Volatility in Cablevision's stock will likely continue given Charles Dolan's reluctance to throw in the towel. Analysts estimate that he would need about $400 million a year to continue financing Voom, but they doubt that he would be able to find partners willing to invest in a business that many analysts feel is not viable. His most likely source of capital would be his shares in Cablevision, valued at slightly under $1 billion.
Even if Charles Dolan agrees to pull the plug on Voom, that might stop him from selling Cablevision. "Regardless of the fate of Voom, we wonder whether irreparable harm has been done to Dolan family business relations," states Richard Greenfield, an analyst with Fulcrum Global Partners. "We believe the potential for a sale of Cablevision is becoming ever more probable."
this is the first sign on wall street about the dueling memos-all other reports just had the closure--reuters,ap,street.com dj etc etc untill this
The funny thing about this article is that they spoke to someone from Sears indicating that Sears is a leading Voom retailer. Essentially the response from Sears was consistent with what you get from their sales people, "Voom, um I don't know anything."
Beyond that, just a rehash of what has been printed everywhere else.
Beyond that, just a rehash of what has been printed everywhere else.
this a WSJ article just off the presses
Voom's Future Is Uncertain
Amid Conflicting Statements
By PETER GRANT
Staff Reporter of THE WALL STREET JOURNAL
March 1, 2005 1:37 p.m.
Confusion swirled Tuesday over the future of the Voom satellite service, owned by Cablevision Systems Corp., as Cablevision's battling chairman and chief executive put out conflicting memos to employees about whether the satellite business would continue.
Cablevision chief executive James Dolan told Voom employees that the company's board has ordered that Voom will be closed. The memo states that Cablevision will help Voom employees find work in other parts of the company.
But another memo sent to Voom employees by Charles Dolan, Cabelvision's chairman and James Dolan's father, states that "members of the Dolan family remain committed" to the business and that "financing for the purchase of Voom operations is in place."
The dueling memos are the latest sign of open warfare within the board room of Cablevision as well as the Dolan family, which built Cablevision into the country's sixth largest cable operator. Charles Dolan, the company's 78-year-old founder, has been the champion of Voom, because he believes that satellite is a more efficient way of distribution television signals than cable. But James Dolan sided with a majority of board members in January who voted to discontinue Voom and sell its only satellite to EchoStar Communications Corp.
After that humiliating defeat, Charles Dolan, and another one of his sons, Tom Dolan, formed a new company that cut a tentative deal with Cablevision to buy Voom's remaining assets. But they had until Monday to finalize that deal and they were failed to do so, triggering the conflicting memos from the two camps. Cablevision also issued a press release Monday stating that Voom would be shut down.
The fighting has produced volatility in Cablevision's stock. It has risen in recent weeks on speculation that Charles Dolan, who controls the majority of a special class of stock with super voting rights, might decide to put Cablevision on the block to raise funds to finance Voom. In early afternoon trading today, Cablevision shares were down 92 cents, or 3%, at $30.14, on news that Cablevision had stopped negotiations to sell Voom's remaining assets to Charles Dolan's new company.
Volatility in Cablevision's stock will likely continue given Charles Dolan's reluctance to throw in the towel. Analysts estimate that he would need about $400 million a year to continue financing Voom, but they doubt that he would be able to find partners willing to invest in a business that many analysts feel is not viable. His most likely source of capital would be his shares in Cablevision, valued at slightly under $1 billion.
Even if Charles Dolan agrees to pull the plug on Voom, that might stop him from selling Cablevision. "Regardless of the fate of Voom, we wonder whether irreparable harm has been done to Dolan family business relations," states Richard Greenfield, an analyst with Fulcrum Global Partners. "We believe the potential for a sale of Cablevision is becoming ever more probable."
Voom's Future Is Uncertain
Amid Conflicting Statements
By PETER GRANT
Staff Reporter of THE WALL STREET JOURNAL
March 1, 2005 1:37 p.m.
Confusion swirled Tuesday over the future of the Voom satellite service, owned by Cablevision Systems Corp., as Cablevision's battling chairman and chief executive put out conflicting memos to employees about whether the satellite business would continue.
Cablevision chief executive James Dolan told Voom employees that the company's board has ordered that Voom will be closed. The memo states that Cablevision will help Voom employees find work in other parts of the company.
But another memo sent to Voom employees by Charles Dolan, Cabelvision's chairman and James Dolan's father, states that "members of the Dolan family remain committed" to the business and that "financing for the purchase of Voom operations is in place."
The dueling memos are the latest sign of open warfare within the board room of Cablevision as well as the Dolan family, which built Cablevision into the country's sixth largest cable operator. Charles Dolan, the company's 78-year-old founder, has been the champion of Voom, because he believes that satellite is a more efficient way of distribution television signals than cable. But James Dolan sided with a majority of board members in January who voted to discontinue Voom and sell its only satellite to EchoStar Communications Corp.
After that humiliating defeat, Charles Dolan, and another one of his sons, Tom Dolan, formed a new company that cut a tentative deal with Cablevision to buy Voom's remaining assets. But they had until Monday to finalize that deal and they were failed to do so, triggering the conflicting memos from the two camps. Cablevision also issued a press release Monday stating that Voom would be shut down.
The fighting has produced volatility in Cablevision's stock. It has risen in recent weeks on speculation that Charles Dolan, who controls the majority of a special class of stock with super voting rights, might decide to put Cablevision on the block to raise funds to finance Voom. In early afternoon trading today, Cablevision shares were down 92 cents, or 3%, at $30.14, on news that Cablevision had stopped negotiations to sell Voom's remaining assets to Charles Dolan's new company.
Volatility in Cablevision's stock will likely continue given Charles Dolan's reluctance to throw in the towel. Analysts estimate that he would need about $400 million a year to continue financing Voom, but they doubt that he would be able to find partners willing to invest in a business that many analysts feel is not viable. His most likely source of capital would be his shares in Cablevision, valued at slightly under $1 billion.
Even if Charles Dolan agrees to pull the plug on Voom, that might stop him from selling Cablevision. "Regardless of the fate of Voom, we wonder whether irreparable harm has been done to Dolan family business relations," states Richard Greenfield, an analyst with Fulcrum Global Partners. "We believe the potential for a sale of Cablevision is becoming ever more probable."
now the AP has picked up on the "new fued"
Cablevision Shuts Down Voom Service
Tuesday March 1, 3:21 pm ET
By Seth Sutel, AP Business Writer
Cablevision Shuts Down Voom High-Definition Satellite TV Service After Failing to Reach Deal
NEW YORK (AP) -- Cablevision Systems Corp., a New York-area cable television provider, is shutting down its high-definition satellite television service called Voom after failing to reach an agreement with its own chairman, who wanted to buy the remaining assets of the business.
ADVERTISEMENT
The announcement from the Bethpage, N.Y.-based company late Monday came amid a fractious battle among members of the Dolan family, which runs Cablevision. Charles Dolan, the company's chairman and founder, had championed the service, while his son James, who is CEO, opposed it.
Last week Cablevision said it would take $354.9 million in charges as it exited the satellite business. Investors had long been skeptical of the plan, which would have put Cablevision in a high-stakes showdown against two entrenched and well-funded competitors, EchoStar Communications Corp., owner of the DISH satellite TV service, and The DirecTV Group Inc.
In December Cablevision said it would sell Voom's satellite to EchoStar for $200 million in cash, and then in February Charles Dolan and his son Tom entered a tentative agreement to acquire the rest of Voom's assets. However, they failed to consummate a deal by a Feb. 28 deadline.
Voom failed to find an audience with consumers since being launched in the fall of 2003. Voom posted an operating loss of $661.4 million on revenues of $14.9 million for all of 2004, including the $354.9 million in write-downs.
In its most recent quarterly regulatory filing, Cablevision disclosed last fall that the Voom service had only 26,000 customers. In its statement late Monday, Cablevision said it would continue providing service to its current Voom customers for at least 30 days. A Cablevision spokesman declined to comment beyond the statement.
Despite the apparently definitive decision from Cablevision to shut down the Voom service, Tom and Charles Dolan released a separate statement through an entity they control saying they were still interested in completing the acquisition of Voom's assets and funding the venture on their own.
The announcement signaled that the family feud surrounding the Voom venture had not yet been settled, which could fuel more speculation that the elder Dolan might sell some of his holdings of Cablevision stock in order finance Voom.
Cablevision also owns New York's Madison Square Garden as well as the sports teams that play there, including the New York Knicks and the NHL's Rangers. Cablevision is in the midst of a public showdown with New York Mayor Michael Bloomberg over Bloomberg's plans to build a stadium on Manhattan's West side, which would compete with the Garden.
Cablevision shares fell 48 cents, or 1.6 percent, to $30.58 in afternoon trading Tuesday on the New York Stock Exchange. The shares have risen steadily over the past seven months, nearly doubling from their 52-week low of $16.13 reached last August, on expectations that the company would get rid of Voom and possibly be put up for sale. Its underlying cable TV business has also been growing strongly thanks to rapid growth of premium services like high-speed data and voice-over-Internet phone offerings.
Cablevision Shuts Down Voom Service
Tuesday March 1, 3:21 pm ET
By Seth Sutel, AP Business Writer
Cablevision Shuts Down Voom High-Definition Satellite TV Service After Failing to Reach Deal
NEW YORK (AP) -- Cablevision Systems Corp., a New York-area cable television provider, is shutting down its high-definition satellite television service called Voom after failing to reach an agreement with its own chairman, who wanted to buy the remaining assets of the business.
ADVERTISEMENT
The announcement from the Bethpage, N.Y.-based company late Monday came amid a fractious battle among members of the Dolan family, which runs Cablevision. Charles Dolan, the company's chairman and founder, had championed the service, while his son James, who is CEO, opposed it.
Last week Cablevision said it would take $354.9 million in charges as it exited the satellite business. Investors had long been skeptical of the plan, which would have put Cablevision in a high-stakes showdown against two entrenched and well-funded competitors, EchoStar Communications Corp., owner of the DISH satellite TV service, and The DirecTV Group Inc.
In December Cablevision said it would sell Voom's satellite to EchoStar for $200 million in cash, and then in February Charles Dolan and his son Tom entered a tentative agreement to acquire the rest of Voom's assets. However, they failed to consummate a deal by a Feb. 28 deadline.
Voom failed to find an audience with consumers since being launched in the fall of 2003. Voom posted an operating loss of $661.4 million on revenues of $14.9 million for all of 2004, including the $354.9 million in write-downs.
In its most recent quarterly regulatory filing, Cablevision disclosed last fall that the Voom service had only 26,000 customers. In its statement late Monday, Cablevision said it would continue providing service to its current Voom customers for at least 30 days. A Cablevision spokesman declined to comment beyond the statement.
Despite the apparently definitive decision from Cablevision to shut down the Voom service, Tom and Charles Dolan released a separate statement through an entity they control saying they were still interested in completing the acquisition of Voom's assets and funding the venture on their own.
The announcement signaled that the family feud surrounding the Voom venture had not yet been settled, which could fuel more speculation that the elder Dolan might sell some of his holdings of Cablevision stock in order finance Voom.
Cablevision also owns New York's Madison Square Garden as well as the sports teams that play there, including the New York Knicks and the NHL's Rangers. Cablevision is in the midst of a public showdown with New York Mayor Michael Bloomberg over Bloomberg's plans to build a stadium on Manhattan's West side, which would compete with the Garden.
Cablevision shares fell 48 cents, or 1.6 percent, to $30.58 in afternoon trading Tuesday on the New York Stock Exchange. The shares have risen steadily over the past seven months, nearly doubling from their 52-week low of $16.13 reached last August, on expectations that the company would get rid of Voom and possibly be put up for sale. Its underlying cable TV business has also been growing strongly thanks to rapid growth of premium services like high-speed data and voice-over-Internet phone offerings.
