Cablevision Board To Debate Voom Fate
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here's my prediction, we'll see if it comes through.
Voom needs a partner, not to give up voom, but to get marketshare. So how do they do it?, they get the biggest partner they can find. FOX.
Voom and Fox partner to deliver the MOST HD and MOST SD on the planet. Murdocks SKY channels all available to US voom customers, including Sky One, News, Music video channels and international channels. Murdoch gets into the US satellite market, voom prospers by offering the most programming anywhere. Anyone else wondering where they would get 200 SD and 70 HD channels from? Content is king and Fox has the content.
Voom needs a partner, not to give up voom, but to get marketshare. So how do they do it?, they get the biggest partner they can find. FOX.
Voom and Fox partner to deliver the MOST HD and MOST SD on the planet. Murdocks SKY channels all available to US voom customers, including Sky One, News, Music video channels and international channels. Murdoch gets into the US satellite market, voom prospers by offering the most programming anywhere. Anyone else wondering where they would get 200 SD and 70 HD channels from? Content is king and Fox has the content.
Bruce
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voombot said:
No to D* having anything to do with Voom.
From Newsday: (Dec 22)
“…Dolan has made efforts to persuade media baron Rupert Murdoch to become a partner with the Dolans in Voom, but has had little success. Murdoch's News Corp. has a 34 percent stake of DirecTV, which has 13.5 million satellite subscribers.”
http://www.avsforum.com/avs-vb/show...764#post4859764
And I wonder if this will come up at the meeting:
fredfa posted on 12-22-04 at AVS:
Despite all the comments about quality of VOOM’s service (Or D*’s or E*s or cable or the intelligence of market analysts), here is the rather simple reason (no one ever mentions) that Cablevision has to sell VOOM – and fairly quickly:
(from Broadcasting & Cable)
Cablevision will likely have to spin-off, shutter, or reconfigure VOOM! at some point if it wants to keep its key New York City cable franchise. It cannot own both a cable system and the land-based distribution licenses, which are currently tied to VOOM!
And with the spinoff possibility now gone, (and the obvious steep cost to Cablevision stock if it announced plans to spend any money to reconfigure VOOM), a sale is the only remaining possibility.
Let's hope Charlie moves quickly.
And one would have to assume he will, to get VOOM in place on E* before the new D* satellites become operational.
http://www.avsforum.com/avs-vb/show...962#post4853962
why does everyone think he(charlie) is going to sell or get a partner for voom, and not just sell the cablevision and take the money and put into voom? If he knows the son intention is to just sell the cable company once he gets control of it? I think Charles sees this and would sell the cable company to see voom succeed, like a big I told you so to James
I think they'll keep it going, perhaps changing focus a little bit to appeal to a broader audience. I am guessing this is really important to Dolan Sr., and although there is some resistance now to the product (not enough people have HDTVs I am guessing) In the long run, the initial losses to stock and cash will pay off. After the baby bells begin offering cable-like services, it will be too late to launch a satellite service, so I think that the timing was right, even though it seems too early given the lack of HDTVs in homes. I don't have enough confidence in that opinion though to put my money and stress on the line (no Voom in my house any time in the near future)
This Saturday I'll become one of Vooms newest sudscribers and I can't wait. I think Voom is a great idea. Hopefully it's not to far ahead of it's time. I believe Voom will survive. I can't wait to get vooming. Hopefully I'll be Vooming a whole lot longer than 6 months. GO VOOM!!!!! 
riffjim4069 said:Junior: Oh, Father...I feel it prudent that we explore the possibility of selling Rainbow DBS assets.
Senior: Son...I feel we should explore the possibility of you being fired and disinherited on the same day.
Junior: Go VOOM!
The printed version of the WSJ article is consistent with this idea pointing out that as founder of the company and family patriarch, Dolan Sr. likely has the influence to have his way. The article suggests that one possible outcome is a shifting in the Board of Directors at Cablevision. So perhaps Cablevision will simply continue to own Voom but under new management...
Actually I am most concerned about the stress of installation based on some of the horror stories. That plus the possible cost of signing up now, then having to pay for the DVR or missing out on a discount for signing up as a new customer at the time it comes out. There were some weird things with Dish re: new vs old customers of the 522, I don't want to have to deal with that. I guess I am more concerned about future costs of being an existing customer vs upfront costs right now.Walter L. said:
$1 installation cost
Hmm with that logic all existing D* customers should cancel and wait for the mpeg4 DVR huh?grendyl said:
Dolans duking it out over Voom
Father and son Cablevision bosses split on booting unprofitable satellite TV venture
Source
BY HARRY BERKOWITZ
STAFF WRITER
January 18, 2005, 3:11 PM EST
Charles and James Dolan, the father and son who control Cablevision Systems Corp., appear headed for an unprecedented showdown over whether to abandon their ailing Voom satellite TV venture.
Charles Dolan, the Cablevision chairman and founder, apparently wants to keep the nationwide satellite service that was launched in October 2003 alive even though it is losing hundreds of millions of dollars and attracting few subscribers.
James Dolan, chief executive of the New York metro area's biggest cable TV service, who has promised investors that Cablevision would stop going off on costly tangents as it has repeatedly in the past, apparently wants to end the all-but-failed experiment. That means dropping Voom and possibly selling its sole satellite.
The Cablevision board of directors was reportedly taking up the issue Tuesday in the face of complaints from analysts and investors that Voom, which had only 26,000 customers as of Sept. 30, threatens to continue to drain company profits and hold down the stock price.
"It would be very difficult for the independent directors to approve additional spending for Voom," said Craig Moffett, an analyst for the investment firm Sanford C. Bernstein & Co. "At the same time, it would take something close to a boardroom coup for Chuck Dolan to force out the independent directors in order to renew investment in Voom. In this environment of corporate governance, that's an awfully hard scenario to imagine."
That seemed to threaten a stalemate unless Charles Dolan bowed to his son's view.
"Despite public sentiment, the company still does not appear to have decided the ultimate outcome, with the board seemingly divided, though tilted slightly in favor of selling or shutting it down," UBS investment analyst Aryeh Bourkoff told investors, adding that "dissension could lead to a public battle." The board meeting was first reported Tuesday in the Wall Street Journal.
Last year, Cablevision planned to spin off Voom, along with cable channels including AMC and IFC, as a separate company, ending the drain on Cablevision profits.
But after repeatedly delaying the spinoff, citing the need for board and regulatory approval, last month Cablevision suspended the plan, saying in a filing that it would seek "strategic alternatives" for Voom, which analysts took to mean a sale or shutdown.
But for Charles Dolan, 78, Voom could be the last hurrah in an illustrious and visionary career that included founding HBO and that often ignored naysayers who later proved to be too pessimistic. He planned to leave Cablevision to become chairman of the spinoff company, with another son, Thomas, becoming its chief executive and James, 49, taking over as Cablevision chairman.
Even following the regulatory filing, Charles and Thomas sent a memo to employees saying that Voom "continues to function on a normal daily basis" and that dropping the spinoff plan in no way "changes the fundamental premise that hard work and good performance will leave our business with anything less than a very bright future," according to Satellite Business News, which was read parts of the memo.
The father and son expressed confidence, "especially during this time of increased board oversight."
But Voom, which posted a loss of $75 million in the third quarter of last year and burned through an estimated $477 million last year, according to Merrill Lynch analyst Jessica Reif Cohen, has run into a long list of technical, marketing, installation and pricing problems.
One of its main outlets for distribution, the Crutchfield catalogue and Web site, has stopped offering the service because Cablevision is setting up a new installer network after problems with the old one, said Dan Hodgson, senior vice president for business development at Crutchfield in Charlottesville, Va.
Nonetheless, Voom continues to expand its channel lineup, which stresses HDTV, and Cablevision signed a $740 million contract with Lockheed Martin last month to develop new satellites for Voom.
"Why is Voom still on the table?" said Mario Gabelli, whose investment firm has long held major stakes in Cablevision and who has long known Charles Dolan. "Why is he trying to breath life into a project that his board turned down? The stock today could be 10 points higher."
At mid-afternoon, Cablevision stock, which had jumped more than $3 in a day following last month's regulatory filing, was down 36 cents per share, or 1.5 percent, at $23.99.
"It's been clear for some months now that Jimmy Dolan would prefer to see the business closed or sold," said Moffett, the analyst.
The Dolan family controls 75 percent of the company's voting shares, with Charles controlling 41 percent directly. That means if he persists in his backing of Voom despite board opposition, he could seek to overhaul the board.
The 14-member board has become less predictable following the appointment of several outside directors, including media investment guru Steve Rattner of the Quadrangle Group, who is believed to strongly oppose continuation of Voom.
Rattner did not return calls to his office yesterday. Thomas Reifenheiser, an independent Cablevision director and former senior executive at Chase Manhattan Bank, declined to comment when reached at his home. Vice Admiral John Ryan, president of the State University of New York Maritime College, also declined comment. Board member John Tatta, a former Cablevision president and longtime ally of the Dolans, was said to be in the hospital.
Father and son Cablevision bosses split on booting unprofitable satellite TV venture
Source
BY HARRY BERKOWITZ
STAFF WRITER
January 18, 2005, 3:11 PM EST
Charles and James Dolan, the father and son who control Cablevision Systems Corp., appear headed for an unprecedented showdown over whether to abandon their ailing Voom satellite TV venture.
Charles Dolan, the Cablevision chairman and founder, apparently wants to keep the nationwide satellite service that was launched in October 2003 alive even though it is losing hundreds of millions of dollars and attracting few subscribers.
James Dolan, chief executive of the New York metro area's biggest cable TV service, who has promised investors that Cablevision would stop going off on costly tangents as it has repeatedly in the past, apparently wants to end the all-but-failed experiment. That means dropping Voom and possibly selling its sole satellite.
The Cablevision board of directors was reportedly taking up the issue Tuesday in the face of complaints from analysts and investors that Voom, which had only 26,000 customers as of Sept. 30, threatens to continue to drain company profits and hold down the stock price.
"It would be very difficult for the independent directors to approve additional spending for Voom," said Craig Moffett, an analyst for the investment firm Sanford C. Bernstein & Co. "At the same time, it would take something close to a boardroom coup for Chuck Dolan to force out the independent directors in order to renew investment in Voom. In this environment of corporate governance, that's an awfully hard scenario to imagine."
That seemed to threaten a stalemate unless Charles Dolan bowed to his son's view.
"Despite public sentiment, the company still does not appear to have decided the ultimate outcome, with the board seemingly divided, though tilted slightly in favor of selling or shutting it down," UBS investment analyst Aryeh Bourkoff told investors, adding that "dissension could lead to a public battle." The board meeting was first reported Tuesday in the Wall Street Journal.
Last year, Cablevision planned to spin off Voom, along with cable channels including AMC and IFC, as a separate company, ending the drain on Cablevision profits.
But after repeatedly delaying the spinoff, citing the need for board and regulatory approval, last month Cablevision suspended the plan, saying in a filing that it would seek "strategic alternatives" for Voom, which analysts took to mean a sale or shutdown.
But for Charles Dolan, 78, Voom could be the last hurrah in an illustrious and visionary career that included founding HBO and that often ignored naysayers who later proved to be too pessimistic. He planned to leave Cablevision to become chairman of the spinoff company, with another son, Thomas, becoming its chief executive and James, 49, taking over as Cablevision chairman.
Even following the regulatory filing, Charles and Thomas sent a memo to employees saying that Voom "continues to function on a normal daily basis" and that dropping the spinoff plan in no way "changes the fundamental premise that hard work and good performance will leave our business with anything less than a very bright future," according to Satellite Business News, which was read parts of the memo.
The father and son expressed confidence, "especially during this time of increased board oversight."
But Voom, which posted a loss of $75 million in the third quarter of last year and burned through an estimated $477 million last year, according to Merrill Lynch analyst Jessica Reif Cohen, has run into a long list of technical, marketing, installation and pricing problems.
One of its main outlets for distribution, the Crutchfield catalogue and Web site, has stopped offering the service because Cablevision is setting up a new installer network after problems with the old one, said Dan Hodgson, senior vice president for business development at Crutchfield in Charlottesville, Va.
Nonetheless, Voom continues to expand its channel lineup, which stresses HDTV, and Cablevision signed a $740 million contract with Lockheed Martin last month to develop new satellites for Voom.
"Why is Voom still on the table?" said Mario Gabelli, whose investment firm has long held major stakes in Cablevision and who has long known Charles Dolan. "Why is he trying to breath life into a project that his board turned down? The stock today could be 10 points higher."
At mid-afternoon, Cablevision stock, which had jumped more than $3 in a day following last month's regulatory filing, was down 36 cents per share, or 1.5 percent, at $23.99.
"It's been clear for some months now that Jimmy Dolan would prefer to see the business closed or sold," said Moffett, the analyst.
The Dolan family controls 75 percent of the company's voting shares, with Charles controlling 41 percent directly. That means if he persists in his backing of Voom despite board opposition, he could seek to overhaul the board.
The 14-member board has become less predictable following the appointment of several outside directors, including media investment guru Steve Rattner of the Quadrangle Group, who is believed to strongly oppose continuation of Voom.
Rattner did not return calls to his office yesterday. Thomas Reifenheiser, an independent Cablevision director and former senior executive at Chase Manhattan Bank, declined to comment when reached at his home. Vice Admiral John Ryan, president of the State University of New York Maritime College, also declined comment. Board member John Tatta, a former Cablevision president and longtime ally of the Dolans, was said to be in the hospital.
I wonder about the accuracy of this statement. When was Crutchfield the main outlet for VOOM distribution? I thought their main outlet was their own Webpage (www.voom.com).
James Dolan... This article makes him look he is the great executive Savior of Cablevision. Don't they know about the NY Rangers, NY Knicks, MSG & FNS (no more Mets, Yankees, or Nets games on it)????
(I am going to comment more on the article but today has been quite a busy day for me.)
18 Jan 2005 11:47 ET DJ MARKET TALK: Voom Uncertainty Hurting Cablevision Shares
11:47 (Dow Jones) Continued uncertainty over the fate of Cablevision's (CVC) satellite TV business, Voom, will hurt the company's stock price, says UBS analyst Aryeh Bourkoff as he cuts his CVC rating to neutral from buy. Reported disagreement between the board and its chairman, Chuck Dolan, about whether or not to sell the floundering business, could lead to a public battle and be disruptive to shareholders, he writes. CVC's core cable business remains strong, but shares could fall below the $22 level if there's a drawn out debate. CVC off 0.6% at $24.20. (EGS)
11:47 (Dow Jones) Continued uncertainty over the fate of Cablevision's (CVC) satellite TV business, Voom, will hurt the company's stock price, says UBS analyst Aryeh Bourkoff as he cuts his CVC rating to neutral from buy. Reported disagreement between the board and its chairman, Chuck Dolan, about whether or not to sell the floundering business, could lead to a public battle and be disruptive to shareholders, he writes. CVC's core cable business remains strong, but shares could fall below the $22 level if there's a drawn out debate. CVC off 0.6% at $24.20. (EGS)
I actually do not own ANY stock in ANY company.voomster2 said:Who cares what Mr. Dolan or his family is doing.
We need to find out what Scott G. is doing stockwise these days!
All giants start off this way
You have to remember Microsoft was started in a garage with a $10,000 loan. Apple computer, same thing. When Revolutions are started there is a lot of resistance. Even when America was liberated from the British, we lost countless brave souls. It was a David and Goliath like situation, look at America today, the most powerful country in the world freed from the clutches of the mighty British empire.
Charles Dolan has the vision, he can see into the future the power of vooms assets. The whole world is converting and thinking about HD. Electronics Arts the software designer announces yesterday that they are alligning with Sony Blue Ray HD-DVD division to design HD games. Voom is a goldmine, this is the year 2005 HD will take off. The market is untapped. Forget US, only if i were the Dolans, i would be thinking Europe, Asia, MIddle East for voomsatellite sales. The satellites are already place, they should sell dishes from Mumbai to Copenhagan. Global Dominatiom. billions on the line, and on the other hand a measly 0.6% drag on the stock price only of paper. Give me a break fire the lazy James Dolan , only thinking about his golf game and his inheritance, and Charles should pursue his vision.
Go Voom Go. Conquer the HD masses. DVR and 70 channels HD, 300 channels HD, 60 days and counting
You have to remember Microsoft was started in a garage with a $10,000 loan. Apple computer, same thing. When Revolutions are started there is a lot of resistance. Even when America was liberated from the British, we lost countless brave souls. It was a David and Goliath like situation, look at America today, the most powerful country in the world freed from the clutches of the mighty British empire.
Charles Dolan has the vision, he can see into the future the power of vooms assets. The whole world is converting and thinking about HD. Electronics Arts the software designer announces yesterday that they are alligning with Sony Blue Ray HD-DVD division to design HD games. Voom is a goldmine, this is the year 2005 HD will take off. The market is untapped. Forget US, only if i were the Dolans, i would be thinking Europe, Asia, MIddle East for voomsatellite sales. The satellites are already place, they should sell dishes from Mumbai to Copenhagan. Global Dominatiom. billions on the line, and on the other hand a measly 0.6% drag on the stock price only of paper. Give me a break fire the lazy James Dolan , only thinking about his golf game and his inheritance, and Charles should pursue his vision.
Go Voom Go. Conquer the HD masses. DVR and 70 channels HD, 300 channels HD, 60 days and counting
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