Cablevision Board To Debate Voom Fate
- Thread starter Bruce
- Start date
- Latest activity Latest activity:
- Replies 474
- Views 55K
- Status
Just wondering
If all of this money that Voom is losing was classified as R & D costs, would investors look at it the same way? Would it be a loss, or an investment in the future?
That is certainly the way I see it- They introduced the product too early, then used us as paying beta testers to help fund their R & D. I don't have a problem with that, I just wish investors would see it that way, because Voom has made continued improvements over the last year, and is just about to hit their stride, imo. They have most of the kinks worked out in the system, they are looking at installation alternatives, & programming gets better every day. Now a big advertising push could get the subs going.
If all of this money that Voom is losing was classified as R & D costs, would investors look at it the same way? Would it be a loss, or an investment in the future?
That is certainly the way I see it- They introduced the product too early, then used us as paying beta testers to help fund their R & D. I don't have a problem with that, I just wish investors would see it that way, because Voom has made continued improvements over the last year, and is just about to hit their stride, imo. They have most of the kinks worked out in the system, they are looking at installation alternatives, & programming gets better every day. Now a big advertising push could get the subs going.
Oh look a first time poster named Ben Dover that doesnt know a V from a Z, who is already commenting on the complexities of Vooms business model. That you Pradike? Red UFO?Ben Dover said:
rgaines said:I for one am keeping my install date of 1/22/2005. I want VOOM even if it's only for 12 days. At least I can say I was there. And I can tell me grandchildren about the great VOOM and how it investor suck.
Atta Boy!!! Now there is the spirit we need around here! Pass the word to all you can to jump on before the ship sails! Personally I am STILL Voomin here in Indy and lovin it!
Yes, my date was this Friday but the installer slipped it to Feb 04. I just rescheduled it to Feb 01.
Seriously, I do not see the service going dark within weeks. If VOOM wants to sell it, beyond just the bird itself, they need to keep the existing subscribers. Otherwise they would be further devaluing the asset.
My bet is that it does get sold but essentially continues under new ownership without the current debt. That new ownership could even be a partnership set up and funded by Dolan Sr. himself. Essentially, just like what happened with Iridium.
It will be interesting to get some updated subscription figures given the recent promotions.
Seriously, I do not see the service going dark within weeks. If VOOM wants to sell it, beyond just the bird itself, they need to keep the existing subscribers. Otherwise they would be further devaluing the asset.
My bet is that it does get sold but essentially continues under new ownership without the current debt. That new ownership could even be a partnership set up and funded by Dolan Sr. himself. Essentially, just like what happened with Iridium.
It will be interesting to get some updated subscription figures given the recent promotions.
Keeping my installation date also
My installation is scheduled for next Monday, the 24th. Since the install will only cost $1, I see no reason not to proceed. I think that given the increase in SDTV channels that they will be adding, the added HDTV channels and the DVR, this company is finally set to expand rapidly. If people on their board of directors could ignore the short term losses and expand their horizon to 2006 or 2007 I doubt that they would consider pulling the plug on Voom.
One quick question that has been asked before, but I don't remember seeing an answer. If I have Voom installed as scheduled and then they stop transmitting, will I still be able to get my OTA HDTV local's with the setup they provided?
My installation is scheduled for next Monday, the 24th. Since the install will only cost $1, I see no reason not to proceed. I think that given the increase in SDTV channels that they will be adding, the added HDTV channels and the DVR, this company is finally set to expand rapidly. If people on their board of directors could ignore the short term losses and expand their horizon to 2006 or 2007 I doubt that they would consider pulling the plug on Voom.
One quick question that has been asked before, but I don't remember seeing an answer. If I have Voom installed as scheduled and then they stop transmitting, will I still be able to get my OTA HDTV local's with the setup they provided?
I would imagine you would still get your OTA locals. It would not make any sense for them to deactivate the boxes. They could require that leased boxes be returned but without the service they are boat anchors so why spend $$$ to get them back. Thus, perhaps if nothing else you have a free antenna and free ATSC OTA tuner boxes.
Everybody is jumping on the sinking ship. I just ordered voom today. My installation is set for the 28th. At least if I only have it for a couple of days I've got a nice outdoor antenna installed for only a buck and if not, woohoo, no more comcast.
Another article on this...
source
Cablevision may be near sale of Voom
By David B. Wilkerson, CBS.MarketWatch.com
Last Update: 1:15 PM ET Jan. 19, 2005
SAN FRANCISCO (CBS.MW) -- Cablevision Systems shares edged higher Wednesday afternoon after the company reportedly moved closer to the sale or shutdown of its Voom satellite unit.
The board of Cablevision (CVC: news, chart, profile) met on Tuesday with management and urged that Voom be jettisoned, according to reports in The New York Times and The Wall Street Journal.
The shares were up 43 cents at $24.40, off from their session high of $25.18.
A spokesman for Cablevision declined comment.
Voom lost more than $75 million in the third quarter of last year. As of Sept. 30, only about 26,000 customers had been activated for Voom service, Cablevision said in its third-quarter earnings report.
Analyst Jea Shim at Tradition Asiel Securities, one of many on Wall Street who has been critical of Cablevision's satellite plans, said Wednesday he believes a sale of Voom is "more likely than not." He added that the announcement of such a decision could send Cablevision shares past the $30 level.
According to the reports, Cablevision Chief Executive James Dolan sides with board members who are in favor of a sale or shutdown of Voom. Chairman Charles Dolan, James' father, wants to keep funding the enterprise, and may try to replace board members who oppose him, the reports said.
Should Charles Dolan be successful, Cablevision shares could drop into the "mid-to-upper teens," Shim said.
Last month, Cablevision decided to suspend its plan to spin off its Rainbow Media Enterprises subsidiary, which includes Voom, cable networks AMC, Women's Entertainment and the Independent Film Channel; and the company's Clearview Cinemas unit.
Instead, the company said in a regulatory filing that it planned to pursue "strategic alternatives."
David B. Wilkerson is a reporter for CBS.MarketWatch.com in San Francisco
source
Cablevision may be near sale of Voom
By David B. Wilkerson, CBS.MarketWatch.com
Last Update: 1:15 PM ET Jan. 19, 2005
SAN FRANCISCO (CBS.MW) -- Cablevision Systems shares edged higher Wednesday afternoon after the company reportedly moved closer to the sale or shutdown of its Voom satellite unit.
The board of Cablevision (CVC: news, chart, profile) met on Tuesday with management and urged that Voom be jettisoned, according to reports in The New York Times and The Wall Street Journal.
The shares were up 43 cents at $24.40, off from their session high of $25.18.
A spokesman for Cablevision declined comment.
Voom lost more than $75 million in the third quarter of last year. As of Sept. 30, only about 26,000 customers had been activated for Voom service, Cablevision said in its third-quarter earnings report.
Analyst Jea Shim at Tradition Asiel Securities, one of many on Wall Street who has been critical of Cablevision's satellite plans, said Wednesday he believes a sale of Voom is "more likely than not." He added that the announcement of such a decision could send Cablevision shares past the $30 level.
According to the reports, Cablevision Chief Executive James Dolan sides with board members who are in favor of a sale or shutdown of Voom. Chairman Charles Dolan, James' father, wants to keep funding the enterprise, and may try to replace board members who oppose him, the reports said.
Should Charles Dolan be successful, Cablevision shares could drop into the "mid-to-upper teens," Shim said.
Last month, Cablevision decided to suspend its plan to spin off its Rainbow Media Enterprises subsidiary, which includes Voom, cable networks AMC, Women's Entertainment and the Independent Film Channel; and the company's Clearview Cinemas unit.
Instead, the company said in a regulatory filing that it planned to pursue "strategic alternatives."
David B. Wilkerson is a reporter for CBS.MarketWatch.com in San Francisco
Plan all wrong
I think their plan for the sat. system was all wrong. They were billed as leaders in HD and target high end users. I think their only "hook" was the HD channels. How many high end HD customers were available in cable land and sat land. I for one loved the HD channels but could not switch due to lack of some premeire SD channels not available. (....family who don't care about HD, just that it's on. I mean now a days kids watch shows on IPods, car players and VideoNow's, they don't care about quality just that it's on. Sure they are wowed by a show in HD but that's where it ends)
Where was\is their customer base? I think there is room for another sat. system but I think the hook needs to pull cable people out of cable land and not pirate E* and D* peeps. My numbers might be wrong but isn't there about (20 mil D* subs, 13 mil E* subs and 150mil cable subs?).
I asked this question in another forum as well. Where is sat. systems hooks anymore.
D* offers NFL
E* used to be the cheapest and good quality (not anymore)
Cable has caught up with DVR's, pic. quality on sat. now equals cable (analog snow versus digital artifacts and softness)
V* offers ?????
I think VOOM can survive if they follow their plans of offering all the SD's of the others as well as the HD and price their package less than the cheapest. That's the hook (COST). Most people switch services because of COST not because one system has a channel that the other doesn't.
Personal note : the only thing keepin me with E* and jumping to cable or D* is the Sirius music channels.....(Siriusly)
I think their plan for the sat. system was all wrong. They were billed as leaders in HD and target high end users. I think their only "hook" was the HD channels. How many high end HD customers were available in cable land and sat land. I for one loved the HD channels but could not switch due to lack of some premeire SD channels not available. (....family who don't care about HD, just that it's on. I mean now a days kids watch shows on IPods, car players and VideoNow's, they don't care about quality just that it's on. Sure they are wowed by a show in HD but that's where it ends)
Where was\is their customer base? I think there is room for another sat. system but I think the hook needs to pull cable people out of cable land and not pirate E* and D* peeps. My numbers might be wrong but isn't there about (20 mil D* subs, 13 mil E* subs and 150mil cable subs?).
I asked this question in another forum as well. Where is sat. systems hooks anymore.
D* offers NFL
E* used to be the cheapest and good quality (not anymore)
Cable has caught up with DVR's, pic. quality on sat. now equals cable (analog snow versus digital artifacts and softness)
V* offers ?????
I think VOOM can survive if they follow their plans of offering all the SD's of the others as well as the HD and price their package less than the cheapest. That's the hook (COST). Most people switch services because of COST not because one system has a channel that the other doesn't.
Personal note : the only thing keepin me with E* and jumping to cable or D* is the Sirius music channels.....(Siriusly)
I am not sure we have heard the definitive word on this. I would expect a press release to come forward shortly. I also don't think that it would go dark on Feb 1. have you notice the VOOM anchors on HDNEWS seem to be acting with a bit mor vigor than usual today. I wonder what that means?
This came in from HDTV Magazine this morning, it doesn't look good:
HDTVMagazine
1/19/2005
Dear Readers:
The most ambitious HDTV signal providing business to yet appear has lost the support of its founders. What does this say about the state of the HDTV business today? Why did VOOM not capture the imagination of the HDTV enthusiasts? Will VOOM find a new home or the grave yard?
Cablevision's Founder Loses Voom Unit Fight to Son
By GERALDINE FABRIKANT and ANDREW ROSS SORKIN
Published: January 19, 2005
major showdown in the family that controls the Cablevision Systems Corporation ended yesterday with the son outmaneuvering the father and persuading directors to vote to put the company's troubled satellite business up for sale.
Yesterday, during a hastily scheduled meeting, directors of Cablevision, debated the fate of Voom, the satellite unit, in a showdown that pitted the father, who wanted to keep the business, against the son, who wanted to sell.
In the end, people close to the board say directors sided with the son, James L. Dolan, the 49-year-old chief executive and the heir apparent, against his father, Charles F. Dolan, the 78-year-old founder and controlling shareholder of Cablevision, based in Bethpage, N.Y.
The meeting appeared to have been prompted by outside directors who are concerned about Voom.
Mr. Dolan's opposition to his father's desire to keep the business was somewhat of a surprise because he has never been seen as particularly independent, and his role on the board has often been unclear.
The friction had drawn lines on the board between some supporters of the elder Mr. Dolan and several independent directors, according to several people close to the board.
One of those people said that two of Mr. Dolan's sons - Patrick Dolan, president of Cablevision's News 12 Networks, and Thomas Dolan, executive vice president of Cablevision Systems - have often lined up with their father against James, who is chief executive of Voom, and is more visible with investors than they are.
Thomas Dolan was scheduled to be named Voom's chief executive when the company was spun off, but that move was shelved in December.
Voom, which broadcasts high-definition television via satellite, has been a money pit. The service had 26,000 subscribers and has lost more than $76 million. When Cablevision canceled plans to spin off Voom and its Rainbow Media group, it said it would "pursue strategic alternatives" instead.
The main candidates to buy Voom - DirecTV and EchoStar - have shown little interest in buying the company's satellites.
Cablevision had no comment.
But, according to a person close to a director, several independent directors were concerned about the possible legal implications of supporting Voom despite its losses and criticism on Wall Street. Problems at Voom are so noticeable that even longtime family supporters have started to oppose the project.
Several executives said yesterday that they were not surprised that directors were worried about the issue of independence in an era when directors at Enron and WorldCom, who did not take any action to stop mismanagement, have been forced to spend their own money to settle suits with shareholders.
The person close to several board members said some directors had obtained a legal opinion that said they needed to address the matter of what to do with Voom. This person said, "It is clear that the only reason they have kept it going is because of Chuck's dominance of the board and because it is a pet project of the chairman."
Nell Minow of the Corporate Library, a corporate governance monitoring organization, said her group had concerns about the independence of the Cablevision board, as well as executive pay. She noted that James Dolan's $1.6 million salary and $2.8 million annual bonus exceed the median for a company of Cablevision's size by over 20 percent. Ms. Minow added that there were many issues that would make a court look closely at a decision to support Mr. Dolan's interest in Voom.
"Keep in mind that the courts look only at the process and the structure," she said. "They ask whether the board followed the right steps and reviewed the questions. Given the coziness of this board it is hard to make a case for its independence. Therefore the genuine outside directors are under an obligation to take a scrupulous, skeptical look at what the management presents to them."
Though James Dolan has been chief executive since 1995, he has never distinguished himself with Wall Street investors in the manner of the chief executive of the Comcast Corporation, Brian L. Roberts, son of the founder Ralph Roberts.
Still, Charles Dolan, who started Cablevision in 1973, has given his son a bigger title than Rupert Murdoch, the chairman of the News Corporation, has given his sons.
Mr. Dolan's support of Voom, however, had undermined his credibility on Wall Street, and James Dolan's opposition to his father could win him investor support.
"This is an important step in Jim's credibility with investors since it shows that he is focused on driving Cablevision's stock price," said Richard Greenfield, who follows Cablevision for Fulcrum Global Partners.
Over the last several years, analysts have found it hard to evaluate James Dolan's tenure. While they have questioned his management of Madison Square Garden, they have generally applauded him for the hiring of Thomas Rutledge as chief operating officer of Cablevision's cable systems business. But even there it is not clear that James Dolan was primarily responsible for bringing in Mr. Rutledge.
Ken Belson contributed reporting for this article.
HDTVMagazine
HDTVMagazine
1/19/2005
Dear Readers:
The most ambitious HDTV signal providing business to yet appear has lost the support of its founders. What does this say about the state of the HDTV business today? Why did VOOM not capture the imagination of the HDTV enthusiasts? Will VOOM find a new home or the grave yard?
Cablevision's Founder Loses Voom Unit Fight to Son
By GERALDINE FABRIKANT and ANDREW ROSS SORKIN
Published: January 19, 2005
major showdown in the family that controls the Cablevision Systems Corporation ended yesterday with the son outmaneuvering the father and persuading directors to vote to put the company's troubled satellite business up for sale.
Yesterday, during a hastily scheduled meeting, directors of Cablevision, debated the fate of Voom, the satellite unit, in a showdown that pitted the father, who wanted to keep the business, against the son, who wanted to sell.
In the end, people close to the board say directors sided with the son, James L. Dolan, the 49-year-old chief executive and the heir apparent, against his father, Charles F. Dolan, the 78-year-old founder and controlling shareholder of Cablevision, based in Bethpage, N.Y.
The meeting appeared to have been prompted by outside directors who are concerned about Voom.
Mr. Dolan's opposition to his father's desire to keep the business was somewhat of a surprise because he has never been seen as particularly independent, and his role on the board has often been unclear.
The friction had drawn lines on the board between some supporters of the elder Mr. Dolan and several independent directors, according to several people close to the board.
One of those people said that two of Mr. Dolan's sons - Patrick Dolan, president of Cablevision's News 12 Networks, and Thomas Dolan, executive vice president of Cablevision Systems - have often lined up with their father against James, who is chief executive of Voom, and is more visible with investors than they are.
Thomas Dolan was scheduled to be named Voom's chief executive when the company was spun off, but that move was shelved in December.
Voom, which broadcasts high-definition television via satellite, has been a money pit. The service had 26,000 subscribers and has lost more than $76 million. When Cablevision canceled plans to spin off Voom and its Rainbow Media group, it said it would "pursue strategic alternatives" instead.
The main candidates to buy Voom - DirecTV and EchoStar - have shown little interest in buying the company's satellites.
Cablevision had no comment.
But, according to a person close to a director, several independent directors were concerned about the possible legal implications of supporting Voom despite its losses and criticism on Wall Street. Problems at Voom are so noticeable that even longtime family supporters have started to oppose the project.
Several executives said yesterday that they were not surprised that directors were worried about the issue of independence in an era when directors at Enron and WorldCom, who did not take any action to stop mismanagement, have been forced to spend their own money to settle suits with shareholders.
The person close to several board members said some directors had obtained a legal opinion that said they needed to address the matter of what to do with Voom. This person said, "It is clear that the only reason they have kept it going is because of Chuck's dominance of the board and because it is a pet project of the chairman."
Nell Minow of the Corporate Library, a corporate governance monitoring organization, said her group had concerns about the independence of the Cablevision board, as well as executive pay. She noted that James Dolan's $1.6 million salary and $2.8 million annual bonus exceed the median for a company of Cablevision's size by over 20 percent. Ms. Minow added that there were many issues that would make a court look closely at a decision to support Mr. Dolan's interest in Voom.
"Keep in mind that the courts look only at the process and the structure," she said. "They ask whether the board followed the right steps and reviewed the questions. Given the coziness of this board it is hard to make a case for its independence. Therefore the genuine outside directors are under an obligation to take a scrupulous, skeptical look at what the management presents to them."
Though James Dolan has been chief executive since 1995, he has never distinguished himself with Wall Street investors in the manner of the chief executive of the Comcast Corporation, Brian L. Roberts, son of the founder Ralph Roberts.
Still, Charles Dolan, who started Cablevision in 1973, has given his son a bigger title than Rupert Murdoch, the chairman of the News Corporation, has given his sons.
Mr. Dolan's support of Voom, however, had undermined his credibility on Wall Street, and James Dolan's opposition to his father could win him investor support.
"This is an important step in Jim's credibility with investors since it shows that he is focused on driving Cablevision's stock price," said Richard Greenfield, who follows Cablevision for Fulcrum Global Partners.
Over the last several years, analysts have found it hard to evaluate James Dolan's tenure. While they have questioned his management of Madison Square Garden, they have generally applauded him for the hiring of Thomas Rutledge as chief operating officer of Cablevision's cable systems business. But even there it is not clear that James Dolan was primarily responsible for bringing in Mr. Rutledge.
Ken Belson contributed reporting for this article.
HDTVMagazine
If voOm goes dark, I am wondering we can file a class action suit against Wall Street analysts. Collectively, they have pushed this to the impossible, just to protect their investments in DirecTV and DishNetwork.
Of course, common sense will tell you I am kidding about a lawsuit, but I have never seen such a reluctance against a new company. Not just one analyst, but everyone. They have been so protective, you just wonder what the deal is.....
Of course, common sense will tell you I am kidding about a lawsuit, but I have never seen such a reluctance against a new company. Not just one analyst, but everyone. They have been so protective, you just wonder what the deal is.....
What was decided at the board meeting?
I saw a thread this morning but didn't get a chance to read it. Now it's gone. What's going on?!
I saw a thread this morning but didn't get a chance to read it. Now it's gone. What's going on?!
- Status
Similar threads
