Cablevision Enters into Interim Agreement Regarding VOOM

[Sat Junkie]

Good News!

Found this on the Nasdaq Company news page
http://www.nasdaq.com/asp/quotes_ne...=stock&formtype=&mkttype=&pathname=&page=news

 

[Lucky]

Cablevision Enters into Interim Agreement Regarding VOOM
Tuesday March 8, 5:29 pm ET


BETHPAGE, N.Y.--(BUSINESS WIRE)--March 8, 2005--Cablevision Systems Corporation (NYSE: CVC - News) announced today that it has entered into an agreement with its Chairman, Charles F. Dolan, and Thomas C. Dolan, pursuant to which the parties will work cooperatively to finalize the separation from Cablevision of its Rainbow DBS operation. The agreement allows Rainbow DBS to remain in operation and to continue to provide its VOOM service to subscribers while Charles and Thomas Dolan seek to arrange an alternate transaction that would avoid a shutdown of Rainbow DBS. Charles Dolan has agreed to fund any costs incurred by Rainbow DBS above those that would have been incurred under a shutdown scenario. The agreement, which was approved by the Board of Directors of Cablevision at a board meeting today and by a special committee of independent directors, terminates on March 31, 2005.
Cablevision Systems Corporation is one of the nation's leading entertainment, media and telecommunications companies. In addition to its cable, Internet, and voice offerings, the company owns and operates Rainbow Media Holdings LLC and its networks; Madison Square Garden and its teams; and, Clearview Cinemas. In addition, Cablevision operates New York's famed Radio City Music Hall. Additional information about Cablevision Systems Corporation is available on the Web at

 

[madpoet]

Well, heck. In other words, stay of execution till the end of the month.

 

[mdonnelly]

Found this on the Nasdaq Company news page
http://www.nasdaq.com/asp/quotes_ne...=stock&formtype=&mkttype=&pathname=&page=news

Good find.

 

[jbphoenix]

Good news!!

I am sure that Charles would not enter into this agreement if he did not have everything already lined up and in place!!

 

[madpoet]

Didn't we say that LAST time?

 

[Lucky]

Yes, it looks like we got a reprieve until March 31. Charles Dolan has agreed to pick up the costs until March31 and continue to negotiate.

 

[riffjim4069]

Good find.

Agreed!!!

 

[Lucky]

I think the hold up is getting an agreement with Echostar to lease space on Rainbow 1.

 

[joep]

I think the hold up is getting an agreement with Echostar to lease space on Rainbow 1.

Or sell it back to Voom for a nice profit?

 

[HiDefGuy]

Note it says to fund anything above what it would have cost to shut it down. Didn't we establish that was a pretty good sum of money? (~300mil) So its not like hes going to be out a bunch of money this month.

Sounds like good news to me?

 

[vurbano]

Bad News, He still doesnt have a deal. They werent going to shut it off until March 31 anyway. All this means is that now there may no time to select a new service and get it installed. Is this just a bunch of garbage to keep customers from leaving for another month?

 

[LunkHead]

Sweeeeeeeet! I waited to get voom (why I have no idea) and have only had the service for a week... But I love it! I am in HD heaven and hope they can pull it off!

 

[67Yv8t]

Note it says to fund anything above what it would have cost to shut it down. Didn't we establish that was a pretty good sum of money? (~300mil) So its not like hes going to be out a bunch of money this month.

Sounds like good news to me?

But if he personally made that guarantee, then, it probably included the cost of later shut being paid by Charles. He could still be on the hook for the 300m if the deal doesn't go together.

 

[Vicki]

Excellent find...Hurdle 1-----OVERCOME!!

 

[vurbano]

Where's the good news? He still doesnt have a plan! they werent going to shut it off until 3/31/05 anyway. Now it may get shut down that night and subs will go without any HD service until they can get another service installed

 

[rvsixer]

I think the hold up is getting an agreement with Echostar to lease space on Rainbow 1.

Echostar doesn't own Rainbow 1. Or did I miss the whole approval process?

 

[67Yv8t]

Where's the good news? He still doesnt have a plan! they werent going to shut it off until 3/31/05 anyway. Now it may get shut down that night and subs will go without any HD service until they can get another service installed

Whinin, whinin, Whinin.

 

[Lucky]

Echostar doesn't own Rainbow 1. Or did I miss the whole approval process?

Yeah, but they will soon. He needs to lease space on Rainbow 1 so he can use it during in the interim period when he switches everyone over to Rainbow 2. He would not have enough time to get everyone over to R2 before Echostar takes over R1.

 

[Juan]

not trying to rain on anybodys parade..but the "march 31st" date hasnt changed at all..sounds like rehashed news to me