Should we expect a Press Announcment on Monday Feb 28? (1 Viewer)

gutter

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Sean or Scott...should we expect a press announcement on Monday that a final deal has been signed or whatever the next stage is?
 

Geronimo

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In fact CVC will have to make a public filing as to what happened with each deal.
 

riffjim4069

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Scott Greczkowski said:
We sit and wait just like you guys. :)
Damn! And I thought you guys at SatelliteGuys were dumpster diving, infiltrating corporate work spaces, low crawling through the inner bowels of satellite operation centers, and social engineering your way to bringing us cutting edge satellite industry news. :p
 

DarrellP

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riffjim4069 said:
Damn! And I thought you guys at SatelliteGuys were dumpster diving, infiltrating corporate work spaces, low crawling through the inner bowels of satellite operation centers, and social engineering your way to bringing us cutting edge satellite industry news. :p
They are but they can't tell you or they'd have to kill your. :D
 

Sean Mota

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Geronimo said:
In fact CVC will have to make a public filing as to what happened with each deal.

Agreed. The same filing as Echostar agreement in buying Rainbow 1. At least an agreement I expect.
 

James Long

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gutter said:
Sean or Scott...should we expect a press announcement on Monday that a final deal has been signed or whatever the next stage is?
An announcement of a definitive agreement is due. It may come Monday, or Cablevision may announce a delay.

The "by Feb 28th" has been widely used in press releases and SEC filings. It is yet another day to watch.

JL
 

gutter

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I believe someone said in another thread that the board has been meeting every Monday. If this is true, than the board could be presented with an agreement to approve or disappove.
 

mike123abc

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The only problem could be that if VOOM is not sold by CVC on Monday is that VOOM could be shut off on the 1st. VOOM wiped out all CVC profits last year, they want to stop the intense bleeding as fast as possible.

You notice in the E*/CVC deal that the satellite is going to go through a testing phase. Hard to use the satellite for VOOM when it is in test mode.
 

James Long

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mike123abc said:
The only problem could be that if VOOM is not sold by CVC on Monday is that VOOM could be shut off on the 1st. VOOM wiped out all CVC profits last year, they want to stop the intense bleeding as fast as possible.
The question is how much would stopping providing service on Tuesday save Cablevision. It wouldn't save Cablevision money to have a few thousand angry customers with no reason to pay their bills.

What would save money would be to stop selling the service, but I doubt if they would do that either. For RainbowDBS to have a value at sale it needs to be a working service. Shutting it down prematurely would cost more than it would save.

RainbowDBS will be there on Tuesday. Hopefully for the Voomers there will be a good announcement about a definitive agreement by then as well.

JL
 

mike123abc

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Rainbow DBS no longer has a sale value. The only "value" is that Dolan Sr would take it off their hands for free (provided he can come up with financing to cover the losses).

from the quarterly results:

The company's bottom line continued to be hurt by its Rainbow DBS unit, which includes Voom. It reported an operating loss of $449.8 million, including $354.9 million in asset write downs.

26,000 customers and they lost $449.8 in one quarter or each "customer" paid lets say $300 for the service or $7.8 million. If you take the write down out they lost $94.9 million dollars or $3,650 PER CUSTOMER.

The bleed rate has gotten so serious now that they can just turn off the whole system and crash R-1 into the earth ground station destroying both and save money after 2 quarters. Yes I know that is not what they would do but it is to illustrate the point.

Right now CVC sees getting back $200,000,000 of the money they are flushing down the toilet from Echostar, and a possible way to prevent the shutdown losses by letting Dolan Sr. take it off his hands.

Dolan Sr sees a way to salvage VOOM by HUGE cost cutting (i.e. lease some cheap Ku-FSS vs paying for an extreamly expensive R-1).

They have now indicated that having a working DBS system is not going to be sold for anything more than scrap. Running free public interest channels on R-1 to keep the frequencies hot until the sale of the satellite would save many millions if the sale of the VOOM assests to Dolan Sr does not go through.

Do you really think the board of CVC really cares about 26,000 angry customers when they would save $100 million per quarter turning them off?
Answer: NO, they voted to turn off the service and sell the assests BEFORE there was an agreement to sell the service to Dolan Sr. They looked at the numbers and saw that even if they get $0 for the assets they would save money soon. VOOM wiped all their profits out and then some last year.

Do you really think that really all the VOOM customers would be really angry? Some will be the other will realize that businesses go out of business and that VOOM was a nice idea but did not make it. I am sure CVC would simply refund any money that people had paid in advance.
 

Sean Mota

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Mike, we can all play the "What If" game and come up with same or different conclusions. The last cards are yet to be played and VOOM is very much alive today and still transmitting from R 1 and soon from R 2. Don't bet on VOOM being out yet that's all I am saying. The "what if" game was good up until Dolar Sr. said that he was going to take the satellite company on his own and have an agreement by 2/28 with CVC. Whether CVC sees the DBS business as bad or good it does not matter anymore. They have agreed to get out of the business. What remains to be seeing is whether CVC will survive in its current form. I think analysts are more interested in knowing now whether CVC will be sold or what. CVC right now has a positive spin that every analyst have put on them and therefore has driven its stock value up the roof which in turns brings up the value of the company as a whole.
 

gutter

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Sean Mota said:
CVC right now has a positive spin that every analyst have put on them and therefore has driven its stock value up the roof which in turns brings up the value of the company as a whole.

Sean you didn't complete that thought. ....and in turn C. and T Dolan make more money to fiinance VOOM.
 

mike123abc

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Monday will still be an exciting day to see how Dolan Sr. manages to come up with the money to finance VOOM. I fully expect that the has the money, and had the money lined up before the announcement was even made. It will just be nice to finally see the transition plan (hope they decide to make it public).
 

zombie

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I just hope they let us know somewhat soon. Then again after they let us know we wont have as much to speculate about.
 

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