Fyi
To: Rainbow Media Enterprises Staff
From: Charles and Tom Dolan
Date: January 19, 2005
Subject: Yesterday's Board Action
Yesterday, Cablevision's Board of Directors in a split vote passed a resolution to sell or dispose of Rainbow DBS, i.e., VOOM and VOOM 21.
While this news is startling, we wish to assure you that the board's action is not in the slightest way a negative reflection upon you or the quality of your work. In our opinion, it has to do with today's post Enron regulatory climate, which places great emphasis on the potential legal liability of directors who sit on the boards of corporations involved with new enterprises such as RDBS.
It is our expectation that RDBS will be offered for sale as an operating business. To do otherwise risks minimizing the return to Cablevision. Sale of RDBS requires RDBS to continue to operate normally. Should RDBS, the business, be sold, RDBS staff will simply work under new ownership.
Potential bidders for RDBS include members of the Dolan family. We love working with a skilled group as dedicated as the RDBS staff, and we love the VOOM project.
We ask and appreciate your patience during this potentially confusing period. The best advice we can provide you is to continue to focus on improving VOOM, both the product and the operation, and all of RME. That is the most any employee at any time can contribute towards securing our future, but especially now.
We look forward to keeping you informed of these matters.
:shocked
