Cablevision Chairman To Use Cash, Stock To Fund Voom

[calikarim]

Voom is A Diamond waiting for discovery

All the trolls that keep saying voom is not making money, have to understand that the costs associated with the startup of voom are the major fixed costs in business such as plant equipment, and in voom's case satellites, uplink centres. These are the major costs on vooms books and reason it is loosing money. Now the additional, or incremental costs are not high, just installing dishes for each additional subscriber, the infrastructre, satellite, deals with programmers are in place. If the cost of an install is say $300 to voom including the box, they can recoup that in three months , for a va va voom customer , i am paying $112 a month. In one year the return on that initial investment is over 300%. I pay almost $1300 a year. Next year no installs, so it is a pure revenue stream, with little monies to maintain subscriber, calls to call centre etc.


Satellites are huge business, Charlie Ergen of dish is worth over ten billion dollars.

Voom will make $$ down line, this show is just starting, Dolan is in Act 1

 

[calikarim]

"They will use logic to defend their negative point of view." Let me think about that line for just a moment...Ok, I'm done. What are you smoking!!?? So you're saying people SHOULDN'T be logical when discussing things like this!!?? What, we should all just drink the kool-aid and pray at the feet of Dolan because Voom is cool???? Get off it..

Now, please pass me the pipe you're smokin...

The Rickster

I guess i should have said MISGUIDED TROLL LOGIC a totally different kind of logic

Ha Ha Ha
Yes i do drink the voom kool aid every day and boy is it does it taste like paradise . I drink it after praying at feet of father Dolan our saviour

 

[mdonnelly]

...If the cost of an install is say $300 to voom including the box, they can recoup that in three months , for a va va voom customer , i am paying $112 a month. In one year the return on that initial investment is over 300%. I pay almost $1300 a year. Next year no installs, so it is a pure revenue stream, with little monies to maintain subscriber, calls to call centre etc. ...

Assuming that you're a typical subscriber, then 46,000 customers (now) times $1300/customer will yield around 60 million dollars per year. That 60 million must support:

1. Cost of management
2. Facilities overhead
3. Direct and indirect employee costs
4. Debt servicing
5. Ongoing programming costs.
6. R&D
and probably more that I can't imagine.

I don't know what any of those costs are, but with quarterly losses over 100 million dollars for Rainbow DBS (from last quarter's figures; the real number was 450 million, but that included some chargeoffs), it's going to take a LOT of subscribers at $112/month to come close to breaking even in the future.

 

[James Long]

Your ears still hear what they want but your eyes choose to ignore what it sees. This was a formal announcement.
=======================
JERICHO, N.Y., Feb. 28 /PRNewswire/ -- VOOM HD, LLC today announced that it is prepared to finance the continued expansion of the VOOM satellite service. Supported by the family interests of Charles and Thomas Dolan, VOOM HD, LLC has advised Cablevision that it continues to be interested in completing a transaction on the terms and conditions of the Letter of Intent into which the two companies entered several weeks ago. These include the purchase of assets and the assumption of liabilities related to the satellite service.

Well blow the dust off of that one! The ONLY press release ever from Voom HD LLC that was put out within an hour of Cablevision announcing that no deal had been completed. Voomers have been through several coronaries since then.

That press release was superceeded by several SEC filings and press releases last week saying Cablevision would allow Charles Dolan to fund Voom through the end of the month while he works out a way to separate RainbowDBS operations from Cablevision. Mr D has 16 days left.

JL

 

[GadgetRick]

:::sigh:::

Your ears still hear what they want but your eyes choose to ignore what it sees. This was a formal announcement.

=======================

JERICHO, N.Y., Feb. 28 /PRNewswire/ -- VOOM HD, LLC today announced that it is prepared to finance the continued expansion of the VOOM satellite service. Supported by the family interests of Charles and Thomas Dolan, VOOM HD, LLC has advised Cablevision that it continues to be interested in completing a transaction on the terms and conditions of the Letter of Intent into which the two companies entered several weeks ago. These include the purchase of assets and the assumption of liabilities related to the satellite service.

Hmm, let's see, this is from February 28th. I remember this release. Let's see, who is TRYING (yes, trying) to purchase the rest of Voom's Assets? Could that be Dolan? And has that purchase done through as of yet? :::holding hand up to ear::: I thought not. Why? Well, he hasn't gotten funding to buy them yet!

Oh, did you actually read what you posted. Let's see, and I quote, "Voom HD, LLC today announced that it is PREPARED to finance the continued expansion of the Voom satellite service." PREPARED to finance, nothing more, nothing less. So, in essence, they have NOT financed anything yet.

Let me go on, and I quote again, "Supported by the family interests of Charles and Thomas Dolan, VOOM HD, LLC has advised Cablevision that it CONTINUES TO BE INTERESTED in completing a transaction on the terms and conditions of the Letter of Intent into which the two companies entered several weeks ago. These include the purchase of assets and the assumption of liabilities related to the satellite service." Hmm, "continues to be interested," sounds to me like the deal ain't done.

Please actually read what you're posting if you're going to throw quotes out there. Have a clue as to what you're talking about...

All the trolls that keep saying voom is not making money, have to understand that the costs associated with the startup of voom are the major fixed costs in business such as plant equipment, and in voom's case satellites, uplink centres. These are the major costs on vooms books and reason it is loosing money. Now the additional, or incremental costs are not high, just installing dishes for each additional subscriber, the infrastructre, satellite, deals with programmers are in place. If the cost of an install is say $300 to voom including the box, they can recoup that in three months , for a va va voom customer , i am paying $112 a month. In one year the return on that initial investment is over 300%. I pay almost $1300 a year. Next year no installs, so it is a pure revenue stream, with little monies to maintain subscriber, calls to call centre etc.


Satellites are huge business, Charlie Ergen of dish is worth over ten billion dollars.

Voom will make $$ down line, this show is just starting, Dolan is in Act 1

Again, I don't think anyone here has said it won't cost a lot of money to get a satellite business off the ground (I know I NEVER said that). However, someone still has to step up and spend the money. That has NOT happened yet (no matter what the other misguided poster thinks). If they can get enough money to keep it going they might be able to become a contender. Until they obtain funding to make it that long they are still in trouble.

The Rickster

 

[James Long]

I don't know what any of those costs are, but with quarterly losses over 100 million dollars for Rainbow DBS (from last quarter's figures; the real number was 450 million, but that included some chargeoffs), it's going to take a LOT of subscribers at $112/month to come close to breaking even in the future.

Average revenue per customer 3Q04 (last quarter available) was $64 per month. This includes revenue from purchasing receivers.

Revenues dropped slightly in 4Q04 (still over 5 million). Despite the undisclosed number of customers they ended the year on, Voom didn't increase revenues in the 4th quarter.

On the cost question, 4Q04 had $95 million plus the writeoffs that were dumped on the quarter. That is promising - unless they spent the extra $20 million on technology instead of December installs. V* lost $75 million in 3Q04. Quarterly operational losses haven't peaked over $100 million YET - although the baloons added in 4Q04 have to be added some time and they forced the yearly average to $165 million.

JL

 

[gutter]

Rickster you still can't read. The money was never the problem. The satellite and the details are. Most large deals take months to complete. This may just take a few weeks. It is done deal except for the dots and dashes. Pretty fast Oh but of course you are a billionaire so you do know better. I forgot.

 

[James Long]

Rickster you still can't read. The money was never the problem. The satellite and the details are. Most large deals take months to complete. This may just take a few weeks. It is done deal except for the dots and dashes. Pretty fast Oh but of course you are a billionaire so you do know better. I forgot.

It is a done deal? What is a "done deal". Certainly NOT Voom being saved.

If it were a "done deal" Chuck would have done it before February 28th. If it were a "done deal" Chuck wouldn't have had to shuffle the Cablevision board to get the shutdown delay until March 31st. If it were a "done deal" we would be hearing POSITIVE reports from those doing the deal.

That Feb 28th press release was a moment of despiration NOT a firm announcement of a "done deal". If it were a "done deal" it would have been followed by details and an aquisition not just a delay in the shutdown. Chuck's friends are not even ready to support him publicaly (Ergen and Malone). Saving Voom is certainly NOT a "done deal".

JL

 

[GadgetRick]

What!!??

Rickster you still can't read. The money was never the problem. The satellite and the details are. Most large deals take months to complete. This may just take a few weeks. It is done deal except for the dots and dashes. Pretty fast Oh but of course you are a billionaire so you do know better. I forgot.

I can't read!!?? Money was never the problem!!?? REALLY, I'd LOVE what you're smoking. Money is ABSOLUTELY the problem. Remember, CVC decided they didn't want to fund Voom any longer. Hmm, that sounds like they don't have the MONEY any longer.

And, although large deals do tend to take a long time to get done, you know the deal is getting done way before it gets done. If it's a done deal who, exactly, is stepping up and funding Voom? Where, exactly did you read this person/company/group is funding Voom? I don't mean things like, "looking into funding," or, "weighing our options," I mean someone saying, "Here's enough money to keep you going for more than a few weeks." There is NOTHING out there saying this is happening. Are they talking to people about it? Of course! However, nobody has stepped up and done it yet.

I'd love to know what the hell you're smoking...

The Rickster

 

[MarcelV]

So, Mr. GadgetRick, I am glad to anounce you're number two on my 'ignore' list. We're talking here about Voom, good or bad, but I am getting pretty sick of the 'all will fall apart and it will happen soon' stories that are just based on assumptions and individual ideologies.
And to all the others, please don't quote him then I still have to read his stories....

 

[niceprophet]

Rickster,

You are wrong. It is not the *funding* of the Voom sale that was the problem and the tie-up. It was the liability and technical details of how the assets and ties were to be severed that caused the hang up.

CVC doesn't want to fund Voom - they never have... This isn't new. That is why it was tried to spin-off into a separate company last year. BTW just because someone doesn't WANT to fund something, doesn't mean they don't HAVE the funds.

 

[chaotic]

So, Mr. GadgetRick, I am glad to anounce you're number two on my 'ignore' list. We're talking here about Voom, good or bad, but I am getting pretty sick of the 'all will fall apart and it will happen soon' stories that are just based on assumptions and individual ideologies.
And to all the others, please don't quote him then I still have to read his stories....

Seems like everyone has to be informed when someone uses the "ignore" list.
Is it suppose to be a "parting shot"? Lame imo.
Just do it and move on.

 

[riffjim4069]

Ignore List Discrepancy: current you cannot see posts from people on your Ignore List...however, they are free to read and quote your posts. What kind of an Ignore feature is this? People on your Ignore List should be restricted from viewing your posts. My definition of Ignore is not to engage the offending person in any form of discussion; the offending person should not be able to see your posts since they are not an authorized recipient. Eventually the trolls will disappears because they won't have anyone who will listen to their agenda - they will truly be IGNORED.

 

[mdonnelly]

...Eventually the trolls will disappears because they won't have anyone who will listen to their agenda - they will truly be IGNORED.

riffjim4069's Dictionary
Troll: "anyone who posts something I don't agree with".

 

[cruzer]

If Dolan can't get the funds to continue the Voom service past the end of March deadline (though I hope he does), does anyone know if there will still be a grace period (like through mid-April) where Voom will still be on? I love Voom and I hate to be pessimistic, but I'd rather have time to shop for my next service, than all of a sudden it go blank.

 

[riffjim4069]

riffjim4069's Dictionary
Troll: "anyone who posts something I don't agree with".

Ok, I get it McDonnelly...you're getting an early start on St. Patrick's Day, huh!

 

[inkpump]

Vida la Voom

I think I have the first VOOM dish. I for one will be vey sad to see them go. I have some space on a Citibank mastercard if Charles needs some extra money. The trouble is a idont have $6M credit. I can't see anybody coming up with this kind of money. However it will be a step backward for all TV Viewers. Kind of like going back to dial up modems.

 

[GadgetRick]

Funny...

So, Mr. GadgetRick, I am glad to anounce you're number two on my 'ignore' list. We're talking here about Voom, good or bad, but I am getting pretty sick of the 'all will fall apart and it will happen soon' stories that are just based on assumptions and individual ideologies.
And to all the others, please don't quote him then I still have to read his stories....

Yes, we are talking about Voom. So, if Voom shuts down tomorrow I guess nobody is allowed to actually admit it? And I've NEVER said anything will or won't happen. I've pointed out they're having a tough time obtaining funding to keep going forward. So please explain how this is based on, "individual ideologies." It's based on the fact they do not have funding in place as of right now. If/when that changes then the whole picture for them changes, doesn't it?

Rickster,

You are wrong. It is not the *funding* of the Voom sale that was the problem and the tie-up. It was the liability and technical details of how the assets and ties were to be severed that caused the hang up.

CVC doesn't want to fund Voom - they never have... This isn't new. That is why it was tried to spin-off into a separate company last year. BTW just because someone doesn't WANT to fund something, doesn't mean they don't HAVE the funds.

Ok, first of all I never said anyone did (or did not) have funds. So I'm not sure what that comment is about.

Also, how am I wrong? If it was/is the liability and technical details of how the assets and ties are to be severed then why is it EVERY press release makes mention of them trying to obtain funding? Also, WHO, exactly, is funding the whole thing then? You keep saying these things but you have no facts to back up what you're saying. I'd love to see them obtain funding, however, they have not as of right now. Until they do it is and will be the major problem for them. Again, you cannot keep the whole thing going unless you've got MONEY to pay to keep everything going.

The Rickster

 

[James Long]

So, Mr. GadgetRick, I am glad to anounce you're number two on my 'ignore' list.

AVS has a feature where one can click and see which other users has the user clicking on their ignore lists. It is an interesting feature, but doesn't explain why certain people ask questions or write posts about people who they are ignoring. (Of course, posts should be about Voom and not people anyways - but that's another topic.)

People on your Ignore List should be restricted from viewing your posts.

Not a good idea. Why should I restrict your viewing of the forum? Ignoring is for people who can't handle seeing certain other people's posts, not for restricting your posts from reaching an audience.

My ignore list is empty. It will stay that way. I have enough respect for even those I disagree with 100% to at least see their posts. And scroll by as needed.

JL

 

[niceprophet]

Ok, first of all I never said anyone did (or did not) have funds. So I'm not sure what that comment is about.

Gee... I must have been "smoking" something when I read this:
I can't read!!?? Money was never the problem!!?? REALLY, I'd LOVE what you're smoking. Money is ABSOLUTELY the problem. Remember, CVC decided they didn't want to fund Voom any longer. Hmm, that sounds like they don't have the MONEY any longer.

Also, how am I wrong? If it was/is the liability and technical details of how the assets and ties are to be severed then why is it EVERY press release makes mention of them trying to obtain funding? Also, WHO, exactly, is funding the whole thing then? You keep saying these things but you have no facts to back up what you're saying.

Actually, the press is not speculating *IF* Chuck Dolan can fund Voom, they are speculating about *HOW* he will do that. That speculation is centered around the tnotion of whether he is going to sell his CVC shares, or obtain the funding from an outside source.

****NOW**** onto the "having no facts to back this up." Well, lets forget for a moment that I am one of a few people on this forum to actually know one of the key CVC players in this situation, let's just suffice to satisfy you with a direct quote from Chuck and Tom to his emplyees in an internal memo:

Financing for the purchase of VOOM operations is in place. We’re optimistic that we will be able to work out an arrangement that meets the needs of all the parties involved.

So could you please play nice... Some of us actually know what we are talking about.