Spinoff won't occur in 2004

[kemguy]

Cablevision: Spinoff Won't Occur in 2004



WASHINGTON - Cablevision Systems Corp. Friday said it no longer believes it will complete the spinoff of its Rainbow Media Enterprises unit this year as planned.



The unit includes Voom, Cablevision's nascent satellite TV service, along with Clearview Cinemas and cable channels AMC, IFC and WE.


Cablevision, the sixth-largest cable operator in the country by subscribers, had previously pushed back its spinoff date to the fourth quarter from the third quarter. The company is based in Bethpage, N.Y.


Cablevision said it wouldn't comment beyond Friday's filing with the Securities and Exchange Commission.


The company last month also disclosed changes to its spinoff plan, saying it would hand over $350 million in preferred interests to the new entity. Cablevision had intended to hold on to redeemable preferred membership interests. By giving those up, Cablevision effectively reduced Rainbow's liabilities.

 

[Ilya]

Here is the exact text from the 12/03/04 SEC filing:

Cablevision Systems Corporation (the “Company”) previously announced that it planned to complete the proposed spin-off of its Rainbow Media Enterprises (“RME”) subsidiary during the fourth quarter of 2004. The Company now believes that completion of the spin-off will not occur in 2004. The spin-off remains subject to the effectiveness of the Form 10 registration statement filed by RME with the Securities and Exchange Commission and final approval of the Company’s Board of Directors.

 

[Ilya]

kemguy, I've changed the name of the thread to make it more specific. I hope, you don't mind. Thanks for posting the news!

 

[Lucky]

What does this mean for VOOM ? Is it good or bad news ?

 

[vurbano]

Hmmmmmmmmm for one thing it means Voom still has big pockets behind it.

 

[mike123abc]

Hmmmmmmmmm for one thing it means Voom still has big pockets behind it.

It also probably means that they cannot get the cash flow projections to work to show that the new company can make it with the giant black hole VOOM is turning out to be. Cablevision could be sued big time if the new company does not have a viable business plan... You cannot just spin off losses and walk away with no liability.

 

[barth2k]

What? Cablevision failing to follow through on something as scheduled? Why, that never happens!