Cablevision Board To Debate Voom Fate
- Thread starter Bruce
- Start date
- Latest activity Latest activity:
- Replies 474
- Views 53K
- Status
I would like to play the Devil's advocate here. First, I am not a VOOM subscriber but an E* subscriber. So maybe you will see my view. I have two points that have not been discussed here.
1) Mr Dolan cannot control the sale of VOOM. He cannot purchase it cheap because Cablevision wants to recoup as much of their lost investment as possible. Charlie Egan tried to by DirectTV and what makes anyone here think that when VOOM goes up for sale with its bandwith that Charlie will not come with big bucks?
Dolan SR. will be in a bidding war for the bandwith with Charlie. Charlie has tried to buy new sats anywhere he could including trying to buy the manufacturers and their current contracts. Anyone remember his move on the Spaceway sats?
2) Voom cannot survive by itself period. The main reason is the LIL markets. If VOOM is completely separated from
Cablevision they will have to provide the LIL markets by the same deadline that has been given to DirectTv and Dish.
The reason that VOOM has not had to provide LIL markets is that Cablevision sold the idea as providing the LIL markets on cable and their HD content would be expanded through their sat company VOOM. Take away Cablevision and now VOOM has to go out and start providing LIL Markets. The FCC has turned down all kind of requests by both D* and E* on providing LIL markets and so how do you think VOOM is going to be able to side-step providing LILs? On their own they will be exactly like D* and E* and without the Cablevision connections they will have to start providing LIL very quickly.
Because of the two reasons above I believe that the only way VOOM can survive is if they partner with a current sat provider either D* or E*. Dish would be the most logical. But then Mr. Rupert always wants to be first and the best and he could go after those sats for the bandwith.
Another reason that I believe that E* is also a good choice is that they have been having meetings with VOOM and Cablevision over the last 3 months. There are several threads in the E* forum as to why they have been meeting and now those meetings are making sense. The new sats and VOOM service would be a nice addition to E*. Charlie could keep VOOM just as it is and sell it as a seperate HD only service and because E* already provides LIL markets and SD, VOOM would not have to. If anything, with the addition of the new Rainbow sat along with E*'s new sats. VOOM would then have two things it current does not have. A 12 million suscriber base to increase its own subscribers (26,000!) and LIL markets thru E* at no additional cost to the new company. :dev
1) Mr Dolan cannot control the sale of VOOM. He cannot purchase it cheap because Cablevision wants to recoup as much of their lost investment as possible. Charlie Egan tried to by DirectTV and what makes anyone here think that when VOOM goes up for sale with its bandwith that Charlie will not come with big bucks?
Dolan SR. will be in a bidding war for the bandwith with Charlie. Charlie has tried to buy new sats anywhere he could including trying to buy the manufacturers and their current contracts. Anyone remember his move on the Spaceway sats?
2) Voom cannot survive by itself period. The main reason is the LIL markets. If VOOM is completely separated from
Cablevision they will have to provide the LIL markets by the same deadline that has been given to DirectTv and Dish.
The reason that VOOM has not had to provide LIL markets is that Cablevision sold the idea as providing the LIL markets on cable and their HD content would be expanded through their sat company VOOM. Take away Cablevision and now VOOM has to go out and start providing LIL Markets. The FCC has turned down all kind of requests by both D* and E* on providing LIL markets and so how do you think VOOM is going to be able to side-step providing LILs? On their own they will be exactly like D* and E* and without the Cablevision connections they will have to start providing LIL very quickly.
Because of the two reasons above I believe that the only way VOOM can survive is if they partner with a current sat provider either D* or E*. Dish would be the most logical. But then Mr. Rupert always wants to be first and the best and he could go after those sats for the bandwith.
Another reason that I believe that E* is also a good choice is that they have been having meetings with VOOM and Cablevision over the last 3 months. There are several threads in the E* forum as to why they have been meeting and now those meetings are making sense. The new sats and VOOM service would be a nice addition to E*. Charlie could keep VOOM just as it is and sell it as a seperate HD only service and because E* already provides LIL markets and SD, VOOM would not have to. If anything, with the addition of the new Rainbow sat along with E*'s new sats. VOOM would then have two things it current does not have. A 12 million suscriber base to increase its own subscribers (26,000!) and LIL markets thru E* at no additional cost to the new company. :dev
riffjim4069,
Maybe if you read the post, you'd learn a little something about business. What I said is absolutely true. Many of the folks who post obviously know little about business, and the way public traded companies have to operate. Too many folks get excited about a MEMO! In the world of business, it isn't a good sign that memo's are going out. For example, you know a coach is going to get fired when the owner asssures everyone that his job is safe!
We have been requested by VOOM / CableVision / Rainbow media to remove the origional memo from the public forum, and while we are under no obligation to do so we felt it was in best interest for the site to do so.
For those who saw the origional memo you are welcomed to discuss it still.
Thanks for your understanding.
For those who saw the origional memo you are welcomed to discuss it still.
Thanks for your understanding.
SatelliteGuys has been contacted by VOOM officials this morning.
They have asked us to remove the internal memo that was posted on our forum yesterday.
We are going to honor their request. Hope, you will support this decision.
Please do not repost the memo!
They have asked us to remove the internal memo that was posted on our forum yesterday.
We are going to honor their request. Hope, you will support this decision.
Please do not repost the memo!
Breifing.COM is now reporting the memo.
We posted the story. http://www.briefing.com/Platinum/InDepth/InPlay.htm
We posted the story. http://www.briefing.com/Platinum/InDepth/InPlay.htm
Bruce
Bender and Chloe, the real Members of the Year
Original poster
Supporting Founder
Lifetime Supporter
- Nov 29, 2003
- 14,721
- 18,859
Hey ,I just found this new story and I don't know if its been posted before, we all thought that Rainbow cancelled/delayed the spin-off on their own, but I found this and I think it puts a little light in whats going on.
And I am only going to post the new stuff, the rest of the story is just a rehash of every other story already posted:
New directors turn tide against Voom
BY HARRY BERKOWITZ
STAFF WRITER
January 20, 2005
And in December, Cablevision canceled plans to spin off Voom as part of a separate, more risk-oriented company, after the Securities and Exchange Commission withheld approval.
It was the spinoff plan that Rattner and James Dolan had cited as the rationale for continuing the tremendously costly and risky venture.
"These two businesses have very different financial characteristics, and so it's very appropriate and sensible to have them go forward in a separate fashion," Rattner said in 2003.
Given all the problems, it could be deemed irresponsible for directors to continue funding Voom, consultants say.
"The board's obligation is to all shareholders," Minow said.
So if the SEC let the spin-off happen, none of this would be going on.
http://www.newsday.com/business/ny-bzvoom204120025jan20,0,1526714.story?coll=ny-business-headlines
And I am only going to post the new stuff, the rest of the story is just a rehash of every other story already posted:
New directors turn tide against Voom
BY HARRY BERKOWITZ
STAFF WRITER
January 20, 2005
And in December, Cablevision canceled plans to spin off Voom as part of a separate, more risk-oriented company, after the Securities and Exchange Commission withheld approval.
It was the spinoff plan that Rattner and James Dolan had cited as the rationale for continuing the tremendously costly and risky venture.
"These two businesses have very different financial characteristics, and so it's very appropriate and sensible to have them go forward in a separate fashion," Rattner said in 2003.
Given all the problems, it could be deemed irresponsible for directors to continue funding Voom, consultants say.
"The board's obligation is to all shareholders," Minow said.
So if the SEC let the spin-off happen, none of this would be going on.
http://www.newsday.com/business/ny-bzvoom204120025jan20,0,1526714.story?coll=ny-business-headlines
Thanks, I read your post and you made some very good points. My only heartache is that I felt you belittled the masses for voicing our uneducated opinions.FrankJo said:
JoeSp said:Scott, that was very nice of you to do but the cat is out of the bag.
VOOM is up for SALE, Cablevison wants the deal done AS QUICK AS POSSIBLE and they want AS MUCH MONEY AS THEY CAN GET!
I think that pretty much covers the memo!
Hmm I find it interesting that other members of the Dolan family could potentially buy Voom but it also opens the door to other potential buyers (Microsoft) that could actually market Voom correct, although I feel they have made much progress as of late.
I really don't want to be an E* or D* customer, so if Voom continues under a new name or same name with a new philosophy I'm all for it. If Voom is chopped up into little pieces and ceases to exist I think that would be the most tragic of all. I somehow keep thinking the HD revolution will lose some steam.
- Status
