Spinoff spotlights new role for chief
Thomas Dolan is key to Cablevision's satellite TV venture, but analysts are wary
By Harry Berkowitz
Staff Writer
August 30, 2004
In his new job as chief executive of a risky satellite TV venture that Cablevision Systems Corp. is about to spin off, Thomas Dolan will have to keep an eye on the sky.
But in his heart, and in his management style, he is very down to earth.
So down to earth that his family's foundation is paying to carve out nearly 30 mammoth rocks -- up to 47 tons apiece -- and haul them to the Canton, N.Y., campus of St. Lawrence University as part of an outdoor geology laboratory.
"I have a soft spot in my heart for earth science," he said in a brief interview. Geology was his major at St. Lawrence, where he graduated in 1974.
Dolan, 52, a son of Cablevision founder Charles Dolan, faces a daunting task as CEO of the spin-off company -- much bigger in scale than the rock project.
Analysts are skeptical
Wall Street analysts are skeptical the venture, called Voom, can succeed. Its competitors include the satellite TV incumbents DirecTV, controlled by Rupert Murdoch, and EchoStar Communications -- which together have more than 22 million customers -- and an array of cable companies, Cablevision among them, with a total of 70 million subscribers.
Dolan may have to rein in his father's boundless vision for the venture to avoid eating up all of the spin-off company's funds before Voom can attract enough subscribers across the United States to sustain it.
Jericho-based Voom, which launched in October, had only 25,000 subscribers as of June 30 and has been losing one in five new customers as it has faced various technological and marketing hurdles. The venture, which stresses high- definition channels, posted a $136-million loss for the first half of 2004. Next month, Cablevision plans to spin it off along with three cable TV channels the company owns, as a separate company called Rainbow Media Enterprises with its own publicly traded stock. But first the Securities and Exchange Commission would have to approve.
Qualifications questioned
Some analysts question whether Thomas Dolan is qualified for the job, beyond being the chairman's son.
Unlike his 77-year-old father, who is often called a visionary and a tough negotiator, or his brother, Cablevision chief executive James Dolan, 49, who is often impulsive and pugnacious, Thomas is seen by associates as a calming influence, as methodical and quiet.
"He's extremely meticulous, more so than I am," James told analysts during a conference call in May. "And he doesn't like to pull the trigger on anything unless he knows exactly what's going to happen."
Thomas has headed Cablevision's vast computer technology systems as chief information officer since 1994, leading an extensive reorganization.
Reined in costs
He was able to reduce expenses significantly, James recalled in the conference call, "so he has a good sense of the balance sheet and a good sense of the income statement and the strategies that are needed for that."
Before that job, Thomas was general manager of the company's operations on the East End of Long Island.
"He actually helped bridge some troubled water there and was a positive influence," said Tony Bullock, who was East Hampton supervisor when Dolan headed the Cablevision office there and is now communications director for Mayor Anthony Willams of Washington, D.C.
"He was consciously attempting to bolster Cablevision's image as a corporate citizen in a positive way," Bullock said, recalling that tension between Cablevision and East End officials had been mounting before the arrival of Dolan, who has a home in Montauk. "He wasn't threatening or obnoxious."
Similarly, professor Mark Erickson of St. Lawrence University, who taught Dolan in a geology class, said his former student was "able to get his point across without being brash."
But the question remains whether Dolan's mix of skills and traits qualifies him for his new role in a hugely ambitious venture with uncertain prospects.
According to St. Lawrence president Daniel Sullivan, Dolan at times has wondered at the fact that he was responsible for much of Cablevision's vast infrastructure even though he had no formal training in information technology, other than seven years as a large systems engineer with IBM before going to Cablevision. Sullivan calls that wonderment "modesty," adding that Dolan is "quite understated" and thoughtful.
Among his biggest cheerleaders is his father.
'More than ready'
"Tom has been with us for over 20 years," Charles Dolan said in an interview after the company's annual meeting in May at the corporate headquarters in Bethpage. "He has handled beautifully every assignment he has been given over that period of time, always with increasing responsibility. I think he is more than ready for this assignment."
The Cablevision founder said each of his six children is distinctly different. Thomas "is very goal-oriented" and "quite prudent," he said.
An outsider familiar with the company's board meetings said Thomas, who was a director at Cablevision and will be a director of the spin-off company, "doesn't necessarily go with the flow ... He has a point of view."
Analysts are wary, though.
They are glad Cablevision will no longer be responsible for funding Voom. But they question whether it will drag down the other parts of the spin-off company -- including the cable channels AMC, WE: Women's Entertainment and the Independent Film Channel.
Cash flow from the profitable channels will help fund Voom. Also, last week, Cablevision said it had finished arranging $1.75 billion in financing for the spin-off, including a $950-million bank credit line and the sale of $800 million in junk bonds. To get the financing, Cablevision agreed to some limits on how much money Voom eats up.
Doubling his salary
At the new company, Thomas Dolan's annual salary is $1.25 million, more than double the $550,000 Cablevision paid him.
But his tastes are not among the most extravagant. Dolan, who is single, is fond of hiking, especially in the Adirondacks. At his father's 5-acre estate on Cove Neck Road in Oyster Bay, where Thomas occasionally resides, Dolan has registered five motorcycles, including two Harley-Davidsons, plus a Ford Bronco, a 1970 Datsun and a 1982 Nissan 280 ZX.
Sullivan, of St. Lawrence, says the rock project is emblematic of Dolan's approach: "It's not flashy, the idea of transporting 50-ton rocks to the campus, but it's a very thoughtful thing."
Thomas Dolan is key to Cablevision's satellite TV venture, but analysts are wary
By Harry Berkowitz
Staff Writer
August 30, 2004
In his new job as chief executive of a risky satellite TV venture that Cablevision Systems Corp. is about to spin off, Thomas Dolan will have to keep an eye on the sky.
But in his heart, and in his management style, he is very down to earth.
So down to earth that his family's foundation is paying to carve out nearly 30 mammoth rocks -- up to 47 tons apiece -- and haul them to the Canton, N.Y., campus of St. Lawrence University as part of an outdoor geology laboratory.
"I have a soft spot in my heart for earth science," he said in a brief interview. Geology was his major at St. Lawrence, where he graduated in 1974.
Dolan, 52, a son of Cablevision founder Charles Dolan, faces a daunting task as CEO of the spin-off company -- much bigger in scale than the rock project.
Analysts are skeptical
Wall Street analysts are skeptical the venture, called Voom, can succeed. Its competitors include the satellite TV incumbents DirecTV, controlled by Rupert Murdoch, and EchoStar Communications -- which together have more than 22 million customers -- and an array of cable companies, Cablevision among them, with a total of 70 million subscribers.
Dolan may have to rein in his father's boundless vision for the venture to avoid eating up all of the spin-off company's funds before Voom can attract enough subscribers across the United States to sustain it.
Jericho-based Voom, which launched in October, had only 25,000 subscribers as of June 30 and has been losing one in five new customers as it has faced various technological and marketing hurdles. The venture, which stresses high- definition channels, posted a $136-million loss for the first half of 2004. Next month, Cablevision plans to spin it off along with three cable TV channels the company owns, as a separate company called Rainbow Media Enterprises with its own publicly traded stock. But first the Securities and Exchange Commission would have to approve.
Qualifications questioned
Some analysts question whether Thomas Dolan is qualified for the job, beyond being the chairman's son.
Unlike his 77-year-old father, who is often called a visionary and a tough negotiator, or his brother, Cablevision chief executive James Dolan, 49, who is often impulsive and pugnacious, Thomas is seen by associates as a calming influence, as methodical and quiet.
"He's extremely meticulous, more so than I am," James told analysts during a conference call in May. "And he doesn't like to pull the trigger on anything unless he knows exactly what's going to happen."
Thomas has headed Cablevision's vast computer technology systems as chief information officer since 1994, leading an extensive reorganization.
Reined in costs
He was able to reduce expenses significantly, James recalled in the conference call, "so he has a good sense of the balance sheet and a good sense of the income statement and the strategies that are needed for that."
Before that job, Thomas was general manager of the company's operations on the East End of Long Island.
"He actually helped bridge some troubled water there and was a positive influence," said Tony Bullock, who was East Hampton supervisor when Dolan headed the Cablevision office there and is now communications director for Mayor Anthony Willams of Washington, D.C.
"He was consciously attempting to bolster Cablevision's image as a corporate citizen in a positive way," Bullock said, recalling that tension between Cablevision and East End officials had been mounting before the arrival of Dolan, who has a home in Montauk. "He wasn't threatening or obnoxious."
Similarly, professor Mark Erickson of St. Lawrence University, who taught Dolan in a geology class, said his former student was "able to get his point across without being brash."
But the question remains whether Dolan's mix of skills and traits qualifies him for his new role in a hugely ambitious venture with uncertain prospects.
According to St. Lawrence president Daniel Sullivan, Dolan at times has wondered at the fact that he was responsible for much of Cablevision's vast infrastructure even though he had no formal training in information technology, other than seven years as a large systems engineer with IBM before going to Cablevision. Sullivan calls that wonderment "modesty," adding that Dolan is "quite understated" and thoughtful.
Among his biggest cheerleaders is his father.
'More than ready'
"Tom has been with us for over 20 years," Charles Dolan said in an interview after the company's annual meeting in May at the corporate headquarters in Bethpage. "He has handled beautifully every assignment he has been given over that period of time, always with increasing responsibility. I think he is more than ready for this assignment."
The Cablevision founder said each of his six children is distinctly different. Thomas "is very goal-oriented" and "quite prudent," he said.
An outsider familiar with the company's board meetings said Thomas, who was a director at Cablevision and will be a director of the spin-off company, "doesn't necessarily go with the flow ... He has a point of view."
Analysts are wary, though.
They are glad Cablevision will no longer be responsible for funding Voom. But they question whether it will drag down the other parts of the spin-off company -- including the cable channels AMC, WE: Women's Entertainment and the Independent Film Channel.
Cash flow from the profitable channels will help fund Voom. Also, last week, Cablevision said it had finished arranging $1.75 billion in financing for the spin-off, including a $950-million bank credit line and the sale of $800 million in junk bonds. To get the financing, Cablevision agreed to some limits on how much money Voom eats up.
Doubling his salary
At the new company, Thomas Dolan's annual salary is $1.25 million, more than double the $550,000 Cablevision paid him.
But his tastes are not among the most extravagant. Dolan, who is single, is fond of hiking, especially in the Adirondacks. At his father's 5-acre estate on Cove Neck Road in Oyster Bay, where Thomas occasionally resides, Dolan has registered five motorcycles, including two Harley-Davidsons, plus a Ford Bronco, a 1970 Datsun and a 1982 Nissan 280 ZX.
Sullivan, of St. Lawrence, says the rock project is emblematic of Dolan's approach: "It's not flashy, the idea of transporting 50-ton rocks to the campus, but it's a very thoughtful thing."
