March 30, 2005
In defiance of his own board and his own son, Cablevision chairman Charles Dolan has filed a petition with federal regulators to block the company's sale of a direct-broadcast satellite spectrum that is vital for his planned $400-million rescue of the Voom satellite TV service.
In his filing with the Federal Communications Commission, which yesterday confirmed it had received the 53-page document, Dolan says Cablevision's deal to sell the satellite to the nation's second-biggest satellite TV service would be anti-competitive and hurt consumers. A group called the Association of Consumers to Preserve and Promote DBS Competition joined him in the filing.
Dolan also says Voom, whose formal name is Rainbow DBS, is obtaining financial commitments for $400 million in cash and credit from its controlling investors. He offered to buy the satellite for Voom. Sources close to the company said "controlling investors" refers to Dolan, who is worth about $2 billion, including about $1 billion in Cablevision stock, part of which he may put up as collateral.
After the board voted in December to shut or sell Voom, Dolan's son, Cablevision chief executive James Dolan signed a deal in January to sell its sole satellite to Colorado-based EchoStar Communications for $200 million.
"We are perplexed that a member of the Cablevision board of directors would now file an objection after the board had already voted to sell the Rainbow satellite," EchoStar spokesman Steve Caulk said yesterday, referring to Dolan. "Nonetheless we remain committed to completing the deal and using the spectrum to help compete in a growing pay TV marketplace."
EchoStar chairman Charlie Ergen has said he expects FCC approval for the sale within three to six months and has refused to alter the deal.
Fulcrum Global Partners media analyst Richard Greenfield called the FCC filing the latest development in a "saga of nearly unbelievable events."
After the directors defied him, Dolan ousted three of them and named five new ones. The new board set a deadline of tomorrow for Dolan to alter the deal with EchoStar and Dolan agreed to put up $10 million of his own cash and Cablevision stock to help keep Voom alive this month. The Cablevision board is expected to confer today or tomorrow to decide its next step.
In defiance of his own board and his own son, Cablevision chairman Charles Dolan has filed a petition with federal regulators to block the company's sale of a direct-broadcast satellite spectrum that is vital for his planned $400-million rescue of the Voom satellite TV service.
In his filing with the Federal Communications Commission, which yesterday confirmed it had received the 53-page document, Dolan says Cablevision's deal to sell the satellite to the nation's second-biggest satellite TV service would be anti-competitive and hurt consumers. A group called the Association of Consumers to Preserve and Promote DBS Competition joined him in the filing.
Dolan also says Voom, whose formal name is Rainbow DBS, is obtaining financial commitments for $400 million in cash and credit from its controlling investors. He offered to buy the satellite for Voom. Sources close to the company said "controlling investors" refers to Dolan, who is worth about $2 billion, including about $1 billion in Cablevision stock, part of which he may put up as collateral.
After the board voted in December to shut or sell Voom, Dolan's son, Cablevision chief executive James Dolan signed a deal in January to sell its sole satellite to Colorado-based EchoStar Communications for $200 million.
"We are perplexed that a member of the Cablevision board of directors would now file an objection after the board had already voted to sell the Rainbow satellite," EchoStar spokesman Steve Caulk said yesterday, referring to Dolan. "Nonetheless we remain committed to completing the deal and using the spectrum to help compete in a growing pay TV marketplace."
EchoStar chairman Charlie Ergen has said he expects FCC approval for the sale within three to six months and has refused to alter the deal.
Fulcrum Global Partners media analyst Richard Greenfield called the FCC filing the latest development in a "saga of nearly unbelievable events."
After the directors defied him, Dolan ousted three of them and named five new ones. The new board set a deadline of tomorrow for Dolan to alter the deal with EchoStar and Dolan agreed to put up $10 million of his own cash and Cablevision stock to help keep Voom alive this month. The Cablevision board is expected to confer today or tomorrow to decide its next step.
