!! - Cablevision to sell satellite business-source - !!

[energetik]

NEW YORK, Jan 20 (Reuters) - Cablevision Systems Corp. (CVC.N: Quote, Profile, Research) has agreed to sell its money-losing Rainbow DBS satellite television business, possibly to its founding family, a source familiar with the family said.

Analysts and the source estimated a sale of Rainbow DBS, which operates the Voom satellite service, would be worth about $200 million.

"(The Dolans) wouldn't have a problem being able to finance the purchase at that price, given (Charles Dolan, Cablevision chairman's) net worth," the source said. "The issue is it's a huge operating bleed."

Cablevision declined to comment.

link to full story from Reuter's:
http://yahoo.reuters.com/printerFriendlyPopup.jhtml?type=quotesCompanyNews&storyID=7386804

 

[energetik]

JUST UPDATED:

UPDATE 1-Cablevision to sell satellite business-source
Thu Jan 20, 2005 04:56 PM ET
(Adds details, background)

By Kenneth Li

NEW YORK, Jan 20 (Reuters) - Cablevision Systems Corp. (CVC.N: Quote, Profile, Research) has agreed to sell its money-losing Rainbow DBS satellite television business, possibly to its founding family, a source close to the family said.

A sale of Rainbow DBS, which operates the Voom satellite service, would be worth about $200 million, according to analysts and the family source.

The source said given the wealth of Charles Dolan, Cablevision chairman, he would have little problem financing the deal. "The issue is it's a huge operating bleed," the source added.

Cablevision declined to comment.

Rainbow DBS was originally earmarked for a spin-off, but that plan was shelved in December after it drew the ire of many analysts and investors that viewed the unit as economically unviable and a drain on Cablevision's cash.

The source said Cablevision, which has held discussions to sell the satellite business to EchoStar Communications Corp. (DISH.O: Quote, Profile, Research) , is continuing those discussions, contrary to media reports that those talks had fallen apart.

An EchoStar spokesman was not immediately reachable.

Voom, aimed at devotees of high-definition television, had 26,000 subscribers as of Sept. 30, compared with 13.5 million subscribers to DirecTV, the largest U.S. satellite service.

Third quarter operating losses swelled to $75.3 million from $29.5 million a year-earlier. It posted $5.9 million in revenue and generated no revenue a year earlier.

Cablevision shares closed up 4.51 percent on Thursday at $25.48 on the New York Stock Exchange.

FULL ARTICLE:
http://yahoo.reuters.com/printerFriendlyPopup.jhtml?type=quotesCompanyNews&storyID=7387046

 

[Walter L.]

A lot of discussion about this topic at http://www.satelliteguys.us/showthread.php?t=43117 (toward the end)
Mod: please merge.