Cablevision Board To Debate Voom Fate

[riffjim4069]

Just received an e-mail reply from Mr. Dolan

FYI...

Dear Mr XXXXXXX:

Many thanks for your kind comments about Voom. They have been
circulated to our staff. Hope you will contact us whenever you have
thoughts for us.

Charles Dolan

 

[JoeSp]

I would like to play the Devil's advocate here. First, I am not a VOOM subscriber but an E* subscriber. So maybe you will see my view. I have two points that have not been discussed here.

1) Mr Dolan cannot control the sale of VOOM. He cannot purchase it cheap because Cablevision wants to recoup as much of their lost investment as possible. Charlie Egan tried to by DirectTV and what makes anyone here think that when VOOM goes up for sale with its bandwith that Charlie will not come with big bucks?

Dolan SR. will be in a bidding war for the bandwith with Charlie. Charlie has tried to buy new sats anywhere he could including trying to buy the manufacturers and their current contracts. Anyone remember his move on the Spaceway sats?

2) Voom cannot survive by itself period. The main reason is the LIL markets. If VOOM is completely separated from
Cablevision they will have to provide the LIL markets by the same deadline that has been given to DirectTv and Dish.

The reason that VOOM has not had to provide LIL markets is that Cablevision sold the idea as providing the LIL markets on cable and their HD content would be expanded through their sat company VOOM. Take away Cablevision and now VOOM has to go out and start providing LIL Markets. The FCC has turned down all kind of requests by both D* and E* on providing LIL markets and so how do you think VOOM is going to be able to side-step providing LILs? On their own they will be exactly like D* and E* and without the Cablevision connections they will have to start providing LIL very quickly.

Because of the two reasons above I believe that the only way VOOM can survive is if they partner with a current sat provider either D* or E*. Dish would be the most logical. But then Mr. Rupert always wants to be first and the best and he could go after those sats for the bandwith.

Another reason that I believe that E* is also a good choice is that they have been having meetings with VOOM and Cablevision over the last 3 months. There are several threads in the E* forum as to why they have been meeting and now those meetings are making sense. The new sats and VOOM service would be a nice addition to E*. Charlie could keep VOOM just as it is and sell it as a seperate HD only service and because E* already provides LIL markets and SD, VOOM would not have to. If anything, with the addition of the new Rainbow sat along with E*'s new sats. VOOM would then have two things it current does not have. A 12 million suscriber base to increase its own subscribers (26,000!) and LIL markets thru E* at no additional cost to the new company. :dev

 

[FrankJo]

It's amazing how little you all know about business and the way it works.

There are 2 scenarios here:

1. Neither Dish nor DirectTV want Voom, in which case Dolan could buy it.

2. If either Dish or DirectTV have an interest in purchasing Voom, Dolan is out. Both of those companies will easily be able to outbid Dolan. Cablevision has a fudiciary responsibility to its shareholders to get the best deal possible. If Dish has an interest in purchasing Voom, expect DirectTV to at least enter the bidding as well, just to drive the price up. The number would end up being higher than 125 million. Dish will not break its bank to get Voom, though. If the cost were to get too high, they would bail. Dish will get in for the right price, but is not going to stretch itself.

We're talking about Voom and the channels, and nothing else. Cablevision would have no interest in selling any of its' other assets.

Dish has the most to gain. They can add more HD programming and a satellite (bandwith bandwith) to boost. I think that what Dish might be most interested in is Vooms channels. They would instantly be able to say that they offer the most HD of any satellite service. Most of Vooms channels don't cost gobs of money to run. The would mean that Dish would have it's own version of HDnet or INHD, with way more content. (Remember, Dish does sell HD television packages. They do have some level of commitment to HD. What better way than to entice consumers with "the most HD anywhere".) Once Mpeg4 takes hold, cable systems, with the added bandwith, could offer those channels as part of a greatly expanded HD line-up. They could better position themselves against DirectTV. What is most important here is that Dish would need to offer those VOOM channels to BOTH SD and HD subscribers (for Dish subscribers). There is good content there, that should not be limited to it's HD pack subscribers. (they could obviously eliminate some of the 21 channels to cut costs as well. 10-15 channels would be a good number.)

riffjim4069,

Maybe if you read the post, you'd learn a little something about business. What I said is absolutely true. Many of the folks who post obviously know little about business, and the way public traded companies have to operate. Too many folks get excited about a MEMO! In the world of business, it isn't a good sign that memo's are going out. For example, you know a coach is going to get fired when the owner asssures everyone that his job is safe!

 

[cidbozek]

Lol

Sure You Did!!! Rotflmao

 

[hbk409]

FYI...

Dear Mr XXXXXXX:

Many thanks for your kind comments about Voom. They have been
circulated to our staff. Hope you will contact us whenever you have
thoughts for us.

Charles Dolan

Its nice to see that Charlie wrote you back anyone get anything back from james??

 

[Scott Greczkowski]

We have been requested by VOOM / CableVision / Rainbow media to remove the origional memo from the public forum, and while we are under no obligation to do so we felt it was in best interest for the site to do so.

For those who saw the origional memo you are welcomed to discuss it still.

Thanks for your understanding.

 

[cidbozek]

email

i have to say, i dont think anyone will be or has gotten emails from any of the dolans.

 

[Ilya]

SatelliteGuys has been contacted by VOOM officials this morning.
They have asked us to remove the internal memo that was posted on our forum yesterday.
We are going to honor their request. Hope, you will support this decision.
Please do not repost the memo!

 

[hbk409]

i have to say, i dont think anyone will be or has gotten emails from any of the dolans.

look at post number#354, it looks like someone got an email back from charlie

 

[JoeSp]

Scott, that was very nice of you to do but the cat is out of the bag.

VOOM is up for SALE, Cablevison wants the deal done AS QUICK AS POSSIBLE and they want AS MUCH MONEY AS THEY CAN GET!

I think that pretty much covers the memo!

 

[joverstr2]

They are watching and listening and that's a good thing....

 

[TC_Lauderdale]

I for one, believe that the request to remove the memo, validates its authenticity.

 

[vurbano]

I for one, believe that the request to remove the memo, validates its authenticity.

I have some property id like to sell you

 

[vurbano]

I for one, believe that the request to remove the memo, validates its authenticity.

no comment

 

[Scott Greczkowski]

Breifing.COM is now reporting the memo.

We posted the story. http://www.briefing.com/Platinum/InDepth/InPlay.htm

09:42
CVC Cablevision: Executive memo leaked - Satelliteguys.us (23.89 -0.48)


Satelliteguys.us is reporting that an executive memo from CVC Chairman Charles Dolan and Tom Dolan (CIO) was leaked to them yesterday. The reported memo reads, "Yesterday, Cablevision's Board of Directors in a split vote passed a resolution to sell or dispose of Rainbow DBS, i.e., VOOM and VOOM 21. It is our expectation that RDBS will be offered for sale as an operating business. To do otherwise risks minimizing the return to Cablevision. Sale of RDBS requires RDBS to continue to operate normally. Potential bidders for RDBS include members of the Dolan family." The complete text of the reported memo can be found at www.satelliteguys.us. (Briefing.com note: CVC has been the subject of much speculation over the past few days in regards to what the board would do with Rainbow DBS (VOOM). This memo could be seen as positive as it may signal that VOOM will be sold and that CVC will not continue to fund the money losing operation.)

 

[cidbozek]

hmmmmmm

look at post number#354, it looks like someone got an email back from charlie

with all thats going on with the dolans, there is no way he replied to him! but thats just my opinion.

 

[Bruce]

Hey ,I just found this new story and I don't know if its been posted before, we all thought that Rainbow cancelled/delayed the spin-off on their own, but I found this and I think it puts a little light in whats going on.
And I am only going to post the new stuff, the rest of the story is just a rehash of every other story already posted:

New directors turn tide against Voom
BY HARRY BERKOWITZ
STAFF WRITER

January 20, 2005


And in December, Cablevision canceled plans to spin off Voom as part of a separate, more risk-oriented company, after the Securities and Exchange Commission withheld approval.

It was the spinoff plan that Rattner and James Dolan had cited as the rationale for continuing the tremendously costly and risky venture.

"These two businesses have very different financial characteristics, and so it's very appropriate and sensible to have them go forward in a separate fashion," Rattner said in 2003.

Given all the problems, it could be deemed irresponsible for directors to continue funding Voom, consultants say.

"The board's obligation is to all shareholders," Minow said.

So if the SEC let the spin-off happen, none of this would be going on.





http://www.newsday.com/business/ny-bzvoom204120025jan20,0,1526714.story?coll=ny-business-headlines

 

[riffjim4069]

riffjim4069,

Maybe if you read the post, you'd learn a little something about business.

Thanks, I read your post and you made some very good points. My only heartache is that I felt you belittled the masses for voicing our uneducated opinions.

 

[riffjim4069]

Its nice to see that Charlie wrote you back anyone get anything back from james??

Didn't send anything to Junior.

 

[Dvlos]

Scott, that was very nice of you to do but the cat is out of the bag.

VOOM is up for SALE, Cablevison wants the deal done AS QUICK AS POSSIBLE and they want AS MUCH MONEY AS THEY CAN GET!

I think that pretty much covers the memo!

Hmm I find it interesting that other members of the Dolan family could potentially buy Voom but it also opens the door to other potential buyers (Microsoft) that could actually market Voom correct, although I feel they have made much progress as of late.

I really don't want to be an E* or D* customer, so if Voom continues under a new name or same name with a new philosophy I'm all for it. If Voom is chopped up into little pieces and ceases to exist I think that would be the most tragic of all. I somehow keep thinking the HD revolution will lose some steam.