Full story
Media banker nets 75M
from Cablevision
BY PHYLLIS FURMAN
DAILY NEWS BUSINESS WRITER
Steven Rattner
Media investment banking honcho Steven Rattner bagged a bundle yesterday from Cablevision, while bailing out on the besieged cable TV giant.
Rattner pocketed a $75 million profit from an investment his firm Quadrangle made two years ago in Cablevision to help it get out of a cash crunch.
The banker - whose past gigs include advising Paramount in its sale to Viacom, and counseling Comcast on its failed Disney bid - decided to bail out on Cablevision last year after it announced a spin-off of its satellite TV and cable nets.
Rattner forced Cablevision to buy him out, getting a total of $150 million - double what he invested two years ago. The payout was higher than expected, analysts said.
"It was certainly a good two-year investment," said Craig Moffett, cable analyst at Sanford Bernstein.
Rattner's payday was disclosed in the company's quarterly results. Cablevision posted a loss of $187 million, or 65 cents a share, compared with $158.3 million, or 54 cents, last year. Sales rose 25% to $973.1 million.
The cable giant's core cable TV business did well. In the quarter, the company added 7,500 cable TV customers.
But Wall Street is fuming over Cablevision's continuing investment in its VOOM satellite TV division, which lost $81 million in the quarter.
And Cablevision's sports cable nets are also hurting. Time Warner Cable has dropped the cable giant's MSG, Fox Sports New York, and Metro channels in a beef over money, shutting out the Mets from 1.4 million New York homes.
Meanwhile, the Mets have exercised their right to get out of their contract with Cablevision's networks - paying the cable giant $54 million in the quarter. Cablevision is still trying to cut a new deal to keep the team.
"Their sports networks are beset by all kinds of problems," said Moffett. "First they lost the Yankees, now they're faced with losing the Mets."
Originally published on August 10, 2004
Media banker nets 75M
from Cablevision
BY PHYLLIS FURMAN
DAILY NEWS BUSINESS WRITER
Steven Rattner
Media investment banking honcho Steven Rattner bagged a bundle yesterday from Cablevision, while bailing out on the besieged cable TV giant.
Rattner pocketed a $75 million profit from an investment his firm Quadrangle made two years ago in Cablevision to help it get out of a cash crunch.
The banker - whose past gigs include advising Paramount in its sale to Viacom, and counseling Comcast on its failed Disney bid - decided to bail out on Cablevision last year after it announced a spin-off of its satellite TV and cable nets.
Rattner forced Cablevision to buy him out, getting a total of $150 million - double what he invested two years ago. The payout was higher than expected, analysts said.
"It was certainly a good two-year investment," said Craig Moffett, cable analyst at Sanford Bernstein.
Rattner's payday was disclosed in the company's quarterly results. Cablevision posted a loss of $187 million, or 65 cents a share, compared with $158.3 million, or 54 cents, last year. Sales rose 25% to $973.1 million.
The cable giant's core cable TV business did well. In the quarter, the company added 7,500 cable TV customers.
But Wall Street is fuming over Cablevision's continuing investment in its VOOM satellite TV division, which lost $81 million in the quarter.
And Cablevision's sports cable nets are also hurting. Time Warner Cable has dropped the cable giant's MSG, Fox Sports New York, and Metro channels in a beef over money, shutting out the Mets from 1.4 million New York homes.
Meanwhile, the Mets have exercised their right to get out of their contract with Cablevision's networks - paying the cable giant $54 million in the quarter. Cablevision is still trying to cut a new deal to keep the team.
"Their sports networks are beset by all kinds of problems," said Moffett. "First they lost the Yankees, now they're faced with losing the Mets."
Originally published on August 10, 2004
