not sure if this was posted already but i will post it
Cablevision's Founder Is Given Deadline on Voom
By GERALDINE FABRIKANT
ablevision Systems said yesterday that the board had agreed to give its chairman and founder, Charles F. Dolan, and a son, Thomas, until the end of the month to acquire the assets of its Voom high-definition television operation.
The company was careful to say that the board, which met Monday and again yesterday, approved the move and that Charles Dolan had agreed to finance any costs Cablevision incurred beyond the expenses that would have arisen under its plan to shut down the service.
Any announcement that Cablevision was assuming more than minimal financing responsibilities for Voom would have probably angered Wall Street analysts, who do not want to see the project cost Cablevision more money.
Last week Mr. Dolan, who controls Cablevision, reconfigured the board, adding four longtime executives with whom he had reached deals in recent decades. At the same time, he removed three directors who had opposed his plan to keep Voom alive.
He said he also planned to use his right as controlling shareholder to appoint up to 75 percent of the directors at the annual meeting in May.
Investors have speculated that Mr. Dolan might put Cablevision up for sale so that he could raise the capital to sustain Voom.
But a person close to the company said that the meeting on Monday ran just two hours and that there was no talk of selling the company. This person said he thought that even if Mr. Dolan had wanted to make changes, he and the board were aware that such moves would provoke investors who were opposed to continued financing of Voom.
Charles Dolan did not return calls seeking comment.
Craig Moffett, an analyst who follows the cable business for Sanford C. Bernstein & Company, said, "It remains questionable whether the Dolans will raise the financing to buy Voom from any outside sources so it is still possible they will sell Cablevision shares."
But the statement yesterday said that Mr. Dolan would seek to arrange "an alternate transaction that would avoid a shutdown of Voom."
Mr. Moffett said that "the alternative transaction would have to be with EchoStar."
"The question is what kind of arrangement?" he said. "It could include buying back the satellite that it just sold to EchoStar for $200 million, or more likely it would simply be a leasing arrangement for capacity on that satellite. Possibly the two companies could do a joint venture."
Cablevision's Founder Is Given Deadline on Voom
By GERALDINE FABRIKANT
ablevision Systems said yesterday that the board had agreed to give its chairman and founder, Charles F. Dolan, and a son, Thomas, until the end of the month to acquire the assets of its Voom high-definition television operation.
The company was careful to say that the board, which met Monday and again yesterday, approved the move and that Charles Dolan had agreed to finance any costs Cablevision incurred beyond the expenses that would have arisen under its plan to shut down the service.
Any announcement that Cablevision was assuming more than minimal financing responsibilities for Voom would have probably angered Wall Street analysts, who do not want to see the project cost Cablevision more money.
Last week Mr. Dolan, who controls Cablevision, reconfigured the board, adding four longtime executives with whom he had reached deals in recent decades. At the same time, he removed three directors who had opposed his plan to keep Voom alive.
He said he also planned to use his right as controlling shareholder to appoint up to 75 percent of the directors at the annual meeting in May.
Investors have speculated that Mr. Dolan might put Cablevision up for sale so that he could raise the capital to sustain Voom.
But a person close to the company said that the meeting on Monday ran just two hours and that there was no talk of selling the company. This person said he thought that even if Mr. Dolan had wanted to make changes, he and the board were aware that such moves would provoke investors who were opposed to continued financing of Voom.
Charles Dolan did not return calls seeking comment.
Craig Moffett, an analyst who follows the cable business for Sanford C. Bernstein & Company, said, "It remains questionable whether the Dolans will raise the financing to buy Voom from any outside sources so it is still possible they will sell Cablevision shares."
But the statement yesterday said that Mr. Dolan would seek to arrange "an alternate transaction that would avoid a shutdown of Voom."
Mr. Moffett said that "the alternative transaction would have to be with EchoStar."
"The question is what kind of arrangement?" he said. "It could include buying back the satellite that it just sold to EchoStar for $200 million, or more likely it would simply be a leasing arrangement for capacity on that satellite. Possibly the two companies could do a joint venture."
