Rainbow Spin-off is dead
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fredfa posted this at AVS:
Despite all the comments about quality of VOOM’s service (Or D*’s or E*s or cable or the intelligence of market analysts), here is the rather simple reason (no one ever mentions) that Cablevision has to sell VOOM – and fairly quickly:
(from Broadcasting & Cable)
Cablevision will likely have to spin-off, shutter, or reconfigure VOOM! at some point if it wants to keep its key New York City cable franchise. It cannot own both a cable system and the land-based distribution licenses, which are currently tied to VOOM!
And with the spinoff possibility now gone, (and the obvious steep cost to Cablevision stock if it announced plans to spend any money to reconfigure VOOM), a sale is the only remaining possibility.
Let's hope Charlie moves quickly.
And one would have to assume he will, to get VOOM in place on E* before the new D* satellites become operational.
http://www.avsforum.com/avs-vb/showthread.php?s=&postid=4853962#post4853962
Despite all the comments about quality of VOOM’s service (Or D*’s or E*s or cable or the intelligence of market analysts), here is the rather simple reason (no one ever mentions) that Cablevision has to sell VOOM – and fairly quickly:
(from Broadcasting & Cable)
Cablevision will likely have to spin-off, shutter, or reconfigure VOOM! at some point if it wants to keep its key New York City cable franchise. It cannot own both a cable system and the land-based distribution licenses, which are currently tied to VOOM!
And with the spinoff possibility now gone, (and the obvious steep cost to Cablevision stock if it announced plans to spend any money to reconfigure VOOM), a sale is the only remaining possibility.
Let's hope Charlie moves quickly.
And one would have to assume he will, to get VOOM in place on E* before the new D* satellites become operational.
http://www.avsforum.com/avs-vb/showthread.php?s=&postid=4853962#post4853962
Guys with all due respect about Microsoft: I don't know if investors will have the stomach for it. They are not in the distribution business. It would be like going into the PC Production business for them.
Paul Allen has taken a bath on Charter and RCN over the past few years. In fact he is currently focused on cable and convinced that that is the superior content delivery platform.
Think about it what reason would Microsoft want to get in the satellite business? They cant deliver XBOX Live, Can't deliver IP services like voice.
Years ago microsoft was going to launch a constellation of satellites to provide broadband but decided it was not profitable or needed. Landlines and wireless cover the US fine and it was a non-core business to get involved in.
Paul Allen has taken a bath on Charter and RCN over the past few years. In fact he is currently focused on cable and convinced that that is the superior content delivery platform.
Think about it what reason would Microsoft want to get in the satellite business? They cant deliver XBOX Live, Can't deliver IP services like voice.
Years ago microsoft was going to launch a constellation of satellites to provide broadband but decided it was not profitable or needed. Landlines and wireless cover the US fine and it was a non-core business to get involved in.
Cablevision scraps satellite TV spinoff plan
Investors applaud Cablevision's move to suspend the venture and seek 'strategic alternatives' instead
BY JAMES BERNSTEIN
STAFF WRITER
December 22, 2004
Cablevision Systems Corp. yesterday said it will suspend plans to spin off its troubled nationwide satellite television service, increasing the chances the venture will be sold.
The Bethpage-based company, the largest cable television operator in the New York area, said in a brief filing with the Securities and Exchange Commission that instead it will seek "strategic alternatives" for its Rainbow Media Enterprises, the business unit that contains its Voom satellite service and three cable networks. Analysts say that usually means a company is looking to sell a business or bring in a partner. A Cablevision spokesman said the company would not comment further.
Investors cheered the move, sending Cablevision's stock up 14 percent, or $3.18, to close at $25.29, in heavy trading. Analysts also applauded, saying they saw little chance of Cablevision's making any money in the satellite TV business that is dominated by DirecTV Group Inc. and Echo Star Communications Corp.
DirecTV and Echo Star have been in the business for more than a decade and each has millions of subscribers. In comparison, Voom had about 26,000 customers as of Sept. 30. Since Voom was launched in October 2003, one of every three customers it signed up eventually dropped the service.
"It was a poorly thought out product offered years late to the market," said Bob Scherman, editor and publisher of Satellite Business News, a trade publication. "Chuck Dolan is a smart guy and he's somewhat of a legend in the business," Scherman said, referring to Cablevision's founder and chairman, Charles Dolan. "But no one could figure out any rationale or business sense" for the satellite operation.
Cablevision's Rainbow DBS unit, which operates Voom, posted sales of $5.9 million, and an operating loss of $75.3 million, in the third quarter.
In a note to clients that typified much of the reaction on Wall Street, Craig E. Moffett, who follows the cable industry for Sanford C. Bernstein & Co., said he was "delighted to see Cablevision's announcement," which he called "welcome news."
Industry experts said that Echo Star, which runs Dish Network, might be a likely buyer of Voom. Steve Caulk, a company spokesman, declined to comment. Dolan has made efforts to persuade media baron Rupert Murdoch to become a partner with the Dolans in Voom, but has had little success. Murdoch's News Corp. has a 34 percent stake of DirecTV, which has 13.5 million satellite subscribers. Echo Star has about 10.4 million customers.
If a buyer cannot be found, analysts said, Cablevision may wind up selling just Voom's assets, which include its customer list, one satellite that was launched last year, and federal licenses to operate.
"Getting rid of Voom would probably be the most significant thing Cablevision could do," said Richard Greenfield, an analyst at Fulcrum Global Partners in Manhattan.
Cablevision's announcement came after the company had twice delayed the spinoff.
If the spinoff had occurred, Charles Dolan would have become chairman of a new company to be called Rainbow Media Enterprises. His son, Thomas, would have been the chief executive of the company, which would have owned the several cable channels and 21 high-definition networks.
Investors applaud Cablevision's move to suspend the venture and seek 'strategic alternatives' instead
BY JAMES BERNSTEIN
STAFF WRITER
December 22, 2004
Cablevision Systems Corp. yesterday said it will suspend plans to spin off its troubled nationwide satellite television service, increasing the chances the venture will be sold.
The Bethpage-based company, the largest cable television operator in the New York area, said in a brief filing with the Securities and Exchange Commission that instead it will seek "strategic alternatives" for its Rainbow Media Enterprises, the business unit that contains its Voom satellite service and three cable networks. Analysts say that usually means a company is looking to sell a business or bring in a partner. A Cablevision spokesman said the company would not comment further.
Investors cheered the move, sending Cablevision's stock up 14 percent, or $3.18, to close at $25.29, in heavy trading. Analysts also applauded, saying they saw little chance of Cablevision's making any money in the satellite TV business that is dominated by DirecTV Group Inc. and Echo Star Communications Corp.
DirecTV and Echo Star have been in the business for more than a decade and each has millions of subscribers. In comparison, Voom had about 26,000 customers as of Sept. 30. Since Voom was launched in October 2003, one of every three customers it signed up eventually dropped the service.
"It was a poorly thought out product offered years late to the market," said Bob Scherman, editor and publisher of Satellite Business News, a trade publication. "Chuck Dolan is a smart guy and he's somewhat of a legend in the business," Scherman said, referring to Cablevision's founder and chairman, Charles Dolan. "But no one could figure out any rationale or business sense" for the satellite operation.
Cablevision's Rainbow DBS unit, which operates Voom, posted sales of $5.9 million, and an operating loss of $75.3 million, in the third quarter.
In a note to clients that typified much of the reaction on Wall Street, Craig E. Moffett, who follows the cable industry for Sanford C. Bernstein & Co., said he was "delighted to see Cablevision's announcement," which he called "welcome news."
Industry experts said that Echo Star, which runs Dish Network, might be a likely buyer of Voom. Steve Caulk, a company spokesman, declined to comment. Dolan has made efforts to persuade media baron Rupert Murdoch to become a partner with the Dolans in Voom, but has had little success. Murdoch's News Corp. has a 34 percent stake of DirecTV, which has 13.5 million satellite subscribers. Echo Star has about 10.4 million customers.
If a buyer cannot be found, analysts said, Cablevision may wind up selling just Voom's assets, which include its customer list, one satellite that was launched last year, and federal licenses to operate.
"Getting rid of Voom would probably be the most significant thing Cablevision could do," said Richard Greenfield, an analyst at Fulcrum Global Partners in Manhattan.
Cablevision's announcement came after the company had twice delayed the spinoff.
If the spinoff had occurred, Charles Dolan would have become chairman of a new company to be called Rainbow Media Enterprises. His son, Thomas, would have been the chief executive of the company, which would have owned the several cable channels and 21 high-definition networks.
Who is Cynthia Turner?
FYI
Does anyone know who this person is?
She apparently is connected to the television industry.
It appears to be very final.
http://www.cynopsis.com/view_cynopsis_text.cfm?ID=1500
FYI
Does anyone know who this person is?
She apparently is connected to the television industry.
It appears to be very final.
http://www.cynopsis.com/view_cynopsis_text.cfm?ID=1500
Kentstater72 said:
Is anybody home and can confirm that Voom service has been suspended (as said on the cynopsis website)? :shocked :shocked :shocked
I might mention that link was sent to me by the same CBS guy that has been vehement about the CBS/Voom upload in Green Bay.
He made no comments.
He made no comments.
andrzej said:
Though the site quoted above does say this, it seems to be entirely based on the Cablevision filing which says they are suspending *the spinoff* not the service... sigh! These are two VERY different things. Rumors, rumors!
CDH.
CDH said:
Hey! I am not spreading a rumor, I am asking a question.
I do not know this author and I thought someone in this forum would have heard of her.
She is obviously read by station managers and sales people in the industry.
I had no comment on the articles validity.
Is it over for Voom? I DON'T WANT TO LEAVE
Damnit if they go under I will be really sad, the only place to go (and if it has to be, maybe they will buy Voom) is E* for me...but I really don't want to hop over to 10 HD channels, channels like MonstersHD (unless Rainbow sells the channel to providers) just won't exist ever again.
Damnit if they go under I will be really sad, the only place to go (and if it has to be, maybe they will buy Voom) is E* for me...but I really don't want to hop over to 10 HD channels, channels like MonstersHD (unless Rainbow sells the channel to providers) just won't exist ever again.
After all the shots we took at each other Dvlos, let me give you a big hug......and a big :neener
Just kidding.. Let me know if you want a Dish Club Card
Just kidding.. Let me know if you want a Dish Club Card
No indication that it is over! Please these comments on this thread: http://www.satelliteguys.us/showthread.php?p=261952#post261952
There are those that have knowledge on just the news coming from the wire and this is where you will find all the speculations.
There are those that have some glimpses of "inside information" but are not sure what it means and will remain silence while everything is sorted out.
There are those that are not linked to the "inside information" but indications of various moves by the companies leads them to beleive that this is not over.
There are those that know what's going on and will never post here or go public but will let time decide.
So hold your horses. It is not over till is over. The panic moves are made only by naysayers. See you in CES 2005...good news coming...by then...
There are those that have some glimpses of "inside information" but are not sure what it means and will remain silence while everything is sorted out.
There are those that are not linked to the "inside information" but indications of various moves by the companies leads them to beleive that this is not over.
There are those that know what's going on and will never post here or go public but will let time decide.
So hold your horses. It is not over till is over. The panic moves are made only by naysayers. See you in CES 2005...good news coming...by then...
Sean Mota said:Not really. If you knew what most of the staff knows here. You would not panic and say it is business as usual.
Oh if only I had contacts at or with Voom. Too bad I'm stuck with DirecTV contacts. Now its time for me to go and cry myself to sleep, feel sorry for myself, get depressed and shoot my foot off because I get drunk. Sadly to say I did this once but only once. At least I got rid of my gun because guns don't kill people drunk dumb depressed people kill themselves right.
Kentstater72 said:
I sent her an e-mail asking for clarification (and pointing out that she was the only one reporting Voom's suspension of service. Here is what she said...
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