Cablevision Board To Debate Voom Fate

[Bruce]

Lets take the new math to even a bigger level:
$300 million to buy
$300-400 million at least to run each year
One billion dollars needed for the new birds
Now how much money do you think he will need Mr.Poindexter?
That much money makes my head hurt just to think about it.

 

[DarrellP]

Here's Charlies' chance to buy Voom, unless, of course, he doesn't find any compelling content there.

 

[gutter]

Actually the current figure for evaluation of a sub in investment circles is over $1500.

I hate to say it, but this is very exciting to see happening right before our eyes. Also Dolan Sr and others can probably pick up VOOM for cents on the dollar and Wall Street and stockholders of Cablevision will still be happy. It would be interesting to see what it does to the next Dolan Thanksgiving day dinner. At 78, I hope he has a long life still ahead and teaches what he knows to son Tom.

 

[Amphicar770]

I said it before and I will say it again.

The "spun off" company will likely be purchased at pennies on the dollar minus the existing debt. The buyers may likely be the Dolan family.

As I mentioned earlier, this is what happened to Iridium and Iridium is still alive and well today. Iridium burned through more money than VOOM ever will. They invested over $5 BILLION and then sold it for $25 MILLION. Before the sale, there was talk that they would shut it down and let the sats plunge into the ocean. Did not happen and will not happen to VOOM either. The new VOOM can be profitable because the "new" company will purchase the assets for almost nothing.

 

[Hoopnoop]

I believe that the anticipated price that analysts were saying for Voom was something like $150 million. So, I think the price is less of an issue compared with absorbing the $70 to $80 million in quarterly loss until Voom hopefully meets its subscribor threshholds. If Dolan, Sr. really believes in Voom than he would expect a good return on such an investment.

 

[Amphicar770]

But how much of the quarterly loss is the "mortgage" on the existing assets? If the fixed costs are lower for the new company then the quarterly losses may also be considerably lower as will the sub threshold. The rumors that neither E* or D* have any interest also works out well for the new investors as that $150 million estimate could then be deemed too optimistic and Dolan Sr. can buy for half that amount. Might also explain the mad rush and great offers to get new subs before the sale. Crazy like a fox that man is.

No matter what one thinks of VOOM, it will be interesting to watch this drama unfold.

 

[gutter]

This thread must be some sort of recored for length in the shortest period of time.

 

[rgarbonzo]

Rme

Okay here's one thing no one has asked yet. With Voom up for sale aren't the channels that got tied into Rainbow Media also for sale?

 

[Rob Tomlin]

So, what if they actually do just pull the plug without Voom being sold. What happens to the satellite(s)?

 

[kfried001]

Fund it privately? How can he possibly have that much money to throw away?

I think Mr. Dolan and investors are going to get VOOM so inexpensively that it is a no-brainer not to buy and invest in it. I believe this may of had some influence on the spin-off, since the media holding could probably have made voom break even. Maybe not, but just a thought. In either case, I cannot image that anyone is so short-sided as to pull the plug on a 1 year venture.

Ken

 

[hbk409]

Okay here's one thing no one has asked yet. With Voom up for sale aren't the channels that got tied into Rainbow Media also for sale?

i guess since they are not spinning it off they would sell it without the channels, although it would really be up to them

 

[Sean Mota]

The entire RDBS is up for sale. Not pieces. Read the memo. This is the same spin-off company that is up for sale. The whole package.

 

[hbk409]

The entire RDBS is up for sale. Not pieces. Read the memo. This is the same spin-off company that is up for sale. The whole package.

that memo also says that they may dispose of it, I do not think that if they close up shop on voom that those channels would cease to broadcast as well.

 

[Scott Greczkowski]

Folks... I have now verifed that this memo is real through 2 seperate sources. Sean has also verified it through his seperate sources.

I couldn't think of better VOOM news to hear. (Well ok... maybe hearing that the DVR is officially released would be as good)

Enjoy your VOOM, I know I am.

 

[rtt2]

The only better news is that Dolan burns through all his money and the banks force him to sell off his shares that he puts up as collateral and supervoting shares; Causing Cablevision Corporation to be in play for a hostile takeover.

Then People in the the tri-state area will be free from the cablevision tyranny and dolan tyranny.

Hopefully we will get Time-Warner as a provider;
Get the Knicks back in shape;
Get the Rangers back in shape;
End those crazy anti-Jets commercials

 

[hbk409]

Hopefully we will get Time-Warner as a provider;

This may happen quicker then you think if james get the company

 

[gutter]

A Time-Warner takeover has been a buzz or rumor for sometime concerning a certain Dolan household. I am not sure this would be good for VOOM, consumers or the future of HDTV.

 

[rgaines]

Damn it! Memo or on memo I'm still getting my VOOM this Saturday. Yeah haaa!!!!!

 

[jeslevine]

wow, we have a chance to come out of this in one piece

(Quote deleted)

and still continue the great HD programming from Voom

 

[Ty2083]

I have been following this thread now since it's inception and I have only one thing to say: I just signed up for Voom tonite online and the installation is set for next week. I have been wanting to do this for a while and after being a Dish customer since the beginning, I am really fed up with Charlie's constant "no compelling content" regarding HD.
Their PQ has been going downhill for several years now, slowly but surely, and now I have had HD home theater for over a year and still no "compelling content"! Enough allready.
I will give Voom a try and see if all I have read about their PQ and content is really what almost everyone says it is. I am looking forward to it. And if Voom should go dark or be sold then I will decide what to do next, probably based on what recommendations I find here in the forums.
Thanks to Scott and Sean (et. al.) for a job well done. You have spurred me into action.