Letter from Inverstors to Chuck: (Voom/Echostar merge?)

[Alto101]

I just got back from my bowling league. When I read this, my thoughts had nothing to do with Dish and Voom merging, but that Dolan would try to buy Rainbow back or at least lease it for a short time.

I don't see how Dish merging with Voom would fulfill Dolan's dream of running a satellite service since he would not own a combined Dish/Voom.

If Dolan is really trying to buy back Rainbow 1 from Dish, this tells me that he has some serious money lined up. You know that Dish is going to want more than the 200 million that they bought it for.

Any thoughts?

Why is it that with each piece of news, I get more and more confused as to what is actually going to happen

 

[Roeoweasel]

Welp I'm one of the 5,000 waiting so mad at myself for not finding voom earlier, but I'm not detered by what's going on.

 

[Vicki]

Well, Bruce, I always apologize if I'm wrong. I admit I missed that cute little smiley!

I guess it just really bothered me that you, having such an eye for detail in most things, wouldn't have noticed you cut out more than half the context. I guess maybe you can see why I might have taken it otherwise, even if I had not missed the smiley?

But I think that is a mighty fine looking, well-fed frog you have there!

 

[danielle_s]

I personally don't believe that echostar is interested in aquiring voom otherwise the would have probably bought more "assests" than they did. I also don't believe that Charles Dolan is in the market of creating content. They want VOOM as a satellite provider and they have the ability to continue VOOM as we know it today with what "assests" is left.

Echostar to aquire VOOM and VOOM to aquire Echostar is just silly. Not impossible just silly

 

[danielle_s]

STOP Feeding the trolls

 

[compson]

Therefore he either needs to negotiate with Echostar to either lease Rainbow1 for some period of time, or to buy Rainbow1 from CVC.

Don't forget there is a Definitive Agreement in place between CVC and Echostar for the sale of Rainbow1. This means that there is very likely a substantial penalty of CVC terminates the agreement, and CVC is not willing to absorb that cost.

My thoughts exactly. Reports Tuesday and Wednesday were that the stumbling block was CVC's potential legal exposure. The CVC/E* contract may require that CVC do nothing to interfere with the sale of Rainbow 1. Dolan may be trying to negotiate a cancellation of the contract.

I view this as bad news. Previously, I thought CVC was just being stubborn, so Dolan put on rational new board members who would quickly approve a sale. Instead, it appears that VOOM's survival is dependent on Charlie Ergen. That doesn't give me great hope.

 

[Sean Mota]

Sorry guys... I was out on Parent's meeting and just got back and found this.. It is a sticky now.

 

[danielle_s]

It looks like Monday is going to be D-Day. And not D as in DOOM But as in DOLAN

We are all going to enjoy the fact that Dolan is setting everything up for the last laugh

 

[compson]

GEEZ! Voom is NOT a religion!! All this worship is making me gag.
tony

Tuesday night, when I surveyed the alternatives, I realized VOOM is worthy of worship. It's depressing to think how little HD the rest of the country sees. I consider myself very fortunate to be among the 46,000.

 

[klen]

Tuesday night, when I surveyed the alternatives, I realized VOOM is worthy of worship. It's depressing to think how little HD the rest of the country sees. I consider myself very fortunate to be among the 46,000.

Same here- I went "provider shopping" on Tuesday night, and I got real depressed. It is really going to suck if a deal isn't struck........

 

[audiosatellite]

DirectTV et al may have their subscribers...but VoOM has an incredible volume of spectacular HD content. Equator HD is breath-taking...National Geographic is shaking in their boots next to this channel. World Sport, Rave, Gallery, just to name a few. The content of these channels makes PBS drool. Quality, innovation, content, content, content. I marvel at Chuck's vision. The board needs to focus on where this company can go. How can they do better! One thing is for sure....BETTER ADVERTISING. The TV ads were awful! Surely the Board must have put those together....How can they expect to sell Steinway when their ads are chopped liver? It's time to recognize the jewel that VoOM is. It's time to let the facets shine. It's time to show it off NOT shut it down!

 

[vurbano]

I wish it were April 1st and all this were decided one way or another.

 

[jame_g]

I wish it were April 1st and all this were decided one way or another.

My fear is that on April 1, the April Fool's Day joke will be on us. But we can hope that it's on the trolls. :neener Go Voom!

 

[kyblue]

I'm one of the 5000 new installs waiting, and at this point i'm both sad and glad. I love my HD which is why I chose to switch to voom, but this soap opera maks me long for stability.

 

[aspanjer]

This is all very interesting ...

but i think right now, i will go watch TV

 

[hbk409]

My fear is that on April 1, the April Fool's Day joke will be on us. But we can hope that it's on the trolls. :neener Go Voom!

maybe they pull another ground hog day and take random channels and make them go black during the course of the day at random times

 

[geekygizmo]

Rainbow I has more to offer then just VOOM!

Let me bring up a technical point of the rainbow I satellite, Voom only uses 14 or so of the 32 Freq. assignments allowed for the 62.5 slot. There is like 40 TWT tubes on board, enough to supply all of voom and a dozen or so more transponders (Vooms transponders take 2 twt's each), so E* can get use of rainbow I and not even take away from voom. They have their freq. assignments covered with their sat right now so the extra transponders rainbow I can provide are all BACKUP. Unless they down some of the TWT's on their bird they don't even need rainbow I. Now if/when the FCC actually gives E* vooms freq. assignments of the 61.5 slot things will change. Don't expect the FCC to move very quick, the ink will have to dry, $ will have to be tendered and THEN the FCC will vote to exchange ownership of the freq assignments, months and months away. Until then E* might as well take the lease $ Dolan is offering, they can't use that part of the spectrum anyway in the short term.

Geeky

 

[James Long]

Let me bring up a technical point of the rainbow I satellite, Voom only uses 14 or so of the 32 Freq. assignments allowed for the 62.5 slot.

1) Rainbow1 is physically limited to 13 transponder frequencies
2) RanbowDBS holds license to 11 TPs and has 2 more borrowed from the FCC
3) The other 19 TPs at 61.5 are licensed to EchoStar and SkyAngel

There is like 40 TWT tubes on board, enough to supply all of voom and a dozen or so more transponders (Vooms transponders take 2 twt's each), so E* can get use of rainbow I and not even take away from voom. They have their freq. assignments covered with their sat right now so the extra transponders rainbow I can provide are all BACKUP.

The trick is that E* is buying V*'s "freq. assignments" as well - so once the deal goes through, RainbowDBS has no permission to broadcast from 61.5.

Unless they down some of the TWT's on their bird they don't even need rainbow I. Now if/when the FCC actually gives E* vooms freq. assignments of the 61.5 slot things will change. Don't expect the FCC to move very quick, the ink will have to dry, $ will have to be tendered and THEN the FCC will vote to exchange ownership of the freq assignments, months and months away.

No earlier than the end of March. Most likely the end of April.

Until then E* might as well take the lease $ Dolan is offering, they can't use that part of the spectrum anyway in the short term.

Yes, they can. It all depends on the terms of the redacted purchase contract. The non-redacted parts are pretty telling with E* paying Cablevision for upkeep until the transfer is final. E* wants those TPs and they want to use them for their own purposes.

JL

 

[geekygizmo]

JL, see this link on Rainbow I
http://www.skyrocket.de/space/doc_sdat/rainbow-1.htm

It has capability to supply all 36 transponders if needed, how be it not all @ double wattage. Right now it's loafing up there sharing it's dutys with E* bird. On the short term E* wants it for backup, longer term they most likely will move their bird to another slot.

Still lots of time for Voom to stay there during the transistion to Rainbow 2.

The ink only aggrees to give E* the assignments, it will take the FCC to actually ok it, as you said, end of march or april, but I think it most like will take longer that that. E* will just be looking at getting some quick $ from Voom in the meantime, unless they are fighting at the board leval too about how to kill voom...... Another story altogether?

GG

 

[Tvlman]

First of all Charles Dolan stated that the financing is "in place." The failure to reach an agreement is the crux of the issue. What constitutes "failure to reach an agreement?" Refusal by James Dolan to implement the terms of the LOI or what? That's the issue. Was there actually a failure to reach an agreement or refusal to reach an agreement bound by the LOI? If, after 16 months of operation CVC wants to shut down VOOM what was the point in the first place? Everyone knows that It takes at least 5 years to break even in the satellite business. CVC wants to see profit after 16 months? Sounds like CVC would shut down the Wright Brothers before they got the wings on the plane, much less allow Orville & Wilbur time to try and fly the darned thing! Hang in there Chuck.