Cablevision Board To Debate Voom Fate
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I have been very quiet since yesterday. As I am trying to understand and brainstorm what is happening. The reports coming out from the stream media cannot be ignored and they clearly spell it out as to what is going to happen. Given this plus other information which it is not published yet or known by most people, I will stay very neutral on this one. It seems like there is one hand spelling "doom" and there's another spelling, "glory". One of them will certainly be decided in the coming days or months. Which one will it be? THAT IS THE 64k question.
All of us can say it is a done deal but it is not a done deal until the "fat lady sings". The best thing about the NY Times report is that it spelled a selling and not a shutdown. A selling could mean a lot of possible scenarios. Who knows what they may or may not be. All I can say at this point, because no one is talking *clearly and plain* (from Voom), is that I will stay put until everything is done. If you don't want to sign up that it's everyone's decision. If you want to leave, that is your decision as well.
I don't have much more to say since some of you wanted to hear what I have to say. At the end of the day, it is your decision to stay, sign up or leave based on what you believe is the correct decision.
Based on what Scott already spelled out and some other "stuff" we have to wait to see how this new information ripples through the entire company and what are the new "reactions".
All of us can say it is a done deal but it is not a done deal until the "fat lady sings". The best thing about the NY Times report is that it spelled a selling and not a shutdown. A selling could mean a lot of possible scenarios. Who knows what they may or may not be. All I can say at this point, because no one is talking *clearly and plain* (from Voom), is that I will stay put until everything is done. If you don't want to sign up that it's everyone's decision. If you want to leave, that is your decision as well.
I don't have much more to say since some of you wanted to hear what I have to say. At the end of the day, it is your decision to stay, sign up or leave based on what you believe is the correct decision.
Based on what Scott already spelled out and some other "stuff" we have to wait to see how this new information ripples through the entire company and what are the new "reactions".
Now I'm seriously thinking switching to E*...I've considered my options, I can get E* through SBC (my local telco) and get a discount (albeit small) on my service, and get it on my phone bill...
Any thoughts?
Any thoughts?
I just wanted to add that IF the proverbial fat lady sings, we can catch her live performance on RAVE HD.Sean Mota said:
bow Anyway, I'm going to enjoy all 39 HD channels and not worry about things beyond my control.This is horrible news if Voom actually shuts down! It is so much better than the other satellite providers. I especially love the ability to seamlessly switch between local OTA channels and the satellite channels, as well as having all the extra HD content.
This is very upsetting.
This is very upsetting.
What if Charles get his other supporting family members to all sell their cablevision stock or vote to sell the company? keep the the channels the rsn, ifc, etc. sell the cable company, msg or radio city. and invest the money into voom. i am sure that they would be able to get a few billion for these assets.
That will really dissappoint Bruce/boo, fredfa and crew.Scott Greczkowski said:VOOM is NOT shutting down.
Enjoy your HDTV.
dlayphoto said:
If you do it online I think you can earn even more money in gift checks:
http://mds.centrport.net/mdsefc?a232500;MSBC245C8952P185794B367609S0;B367609
It seems awful strange that the NY Times is the only one that have said that James Dolan won the fight over his father. And the WSJ, is stating a shutdown at 2/1/05 (or no more money budget into VOOM). We will know in 12 days if the WSJ is correct in its assessment.
Cablevision's top duo see the struggling unit differently; issue is before board as investors keep watch
BY HARRY BERKOWITZ
STAFF WRITER
January 19, 2005
Charles and James Dolan, the father and son who control Cablevision Systems Corp., yesterday had an unprecedented showdown about whether to abandon their ailing Voom satellite TV venture.
Charles Dolan, the Cablevision chairman and founder, wants to keep the nationwide satellite service, 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 metropolitan 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, wants to end the all-but-failed experiment. That means dropping Voom and possibly selling its sole satellite.
The Cablevision board of directors was taking up the issue yesterday afternoon in the face of complaints from analysts and investors that Voom, which had only 26,000 customers as of Sept. 30, threatens to drain more company profits and hold down the stock price.
The meeting reportedly ended last night with the board leaning against continuing the venture.
"It would be very difficult for the independent directors to approve additional spending for Voom," said Craig Moffett, an analyst for 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."
Investors are eager for a resolution to the impasse.
"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 before the board meeting, adding that "dissension could lead to a public battle."
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 again delaying the spinoff, Cablevision suspended the plan last month, saying 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 after the regulatory filing canceling the spinoff, Charles and Thomas sent a memo to employees saying Voom "continues to function on a normal daily basis" and predicting nothing less than a "very bright future," according to Satellite Business News.
But Voom, which posted a loss of $75 million in the third quarter and burned through an estimated $477 million last year, according to Merrill Lynch analyst Jessica Reif Cohen, has run into many technical, marketing, installation and pricing problems.
A key outlet for distribution, the Crutchfield catalog 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, a Crutchfield executive.
Cablevision stock, which had jumped more than $3 in one day after last month's regulatory filing, yesterday fell 38 cents a share, or 1.6 percent, to $23.97.
Father vs. son
How the heads of the Cablevision empire stack up against each other.
Charles Dolan
Age: 78
Job: Chairman of Cablevision
EARNINGS: $1.6 million salary for 2003; $4.8 million bonus
Voting Shares: 75% stake controlled by family, including 41% by Dolan
Resume: Chairman, director since 1985
Chief executive, 1985-95
Founded and acted as general partner of company's predecessor, 1973-85
Established Manhattan Cable Television, 1961, and HBO, 1971
Battles: Acquired Knicks, Rangers
Failed to acquire Yankees, Jets
James Dolan
Age: 49
Job: President and chief executive of Cablevision; chairman of Madison Square Garden
EARNINGS: $1.6 million salary for 2003; $2.8 million bonus
Voting Shares: 2.5% stake
RESUME: Director of Cablevision since 1991
President since 1998
Chief executive since 1995
Chairman of Madison Square Garden since 1999
Chief executive of Rainbow Media Holdings, a subsidiary, 1992-95
Vice president of the company, 1987-92
Battles: Fighting with Mayor Michael Bloomberg to block West Side stadium for Jets
BY HARRY BERKOWITZ
STAFF WRITER
January 19, 2005
Charles and James Dolan, the father and son who control Cablevision Systems Corp., yesterday had an unprecedented showdown about whether to abandon their ailing Voom satellite TV venture.
Charles Dolan, the Cablevision chairman and founder, wants to keep the nationwide satellite service, 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 metropolitan 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, wants to end the all-but-failed experiment. That means dropping Voom and possibly selling its sole satellite.
The Cablevision board of directors was taking up the issue yesterday afternoon in the face of complaints from analysts and investors that Voom, which had only 26,000 customers as of Sept. 30, threatens to drain more company profits and hold down the stock price.
The meeting reportedly ended last night with the board leaning against continuing the venture.
"It would be very difficult for the independent directors to approve additional spending for Voom," said Craig Moffett, an analyst for 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."
Investors are eager for a resolution to the impasse.
"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 before the board meeting, adding that "dissension could lead to a public battle."
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 again delaying the spinoff, Cablevision suspended the plan last month, saying 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 after the regulatory filing canceling the spinoff, Charles and Thomas sent a memo to employees saying Voom "continues to function on a normal daily basis" and predicting nothing less than a "very bright future," according to Satellite Business News.
But Voom, which posted a loss of $75 million in the third quarter and burned through an estimated $477 million last year, according to Merrill Lynch analyst Jessica Reif Cohen, has run into many technical, marketing, installation and pricing problems.
A key outlet for distribution, the Crutchfield catalog 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, a Crutchfield executive.
Cablevision stock, which had jumped more than $3 in one day after last month's regulatory filing, yesterday fell 38 cents a share, or 1.6 percent, to $23.97.
Father vs. son
How the heads of the Cablevision empire stack up against each other.
Charles Dolan
Age: 78
Job: Chairman of Cablevision
EARNINGS: $1.6 million salary for 2003; $4.8 million bonus
Voting Shares: 75% stake controlled by family, including 41% by Dolan
Resume: Chairman, director since 1985
Chief executive, 1985-95
Founded and acted as general partner of company's predecessor, 1973-85
Established Manhattan Cable Television, 1961, and HBO, 1971
Battles: Acquired Knicks, Rangers
Failed to acquire Yankees, Jets
James Dolan
Age: 49
Job: President and chief executive of Cablevision; chairman of Madison Square Garden
EARNINGS: $1.6 million salary for 2003; $2.8 million bonus
Voting Shares: 2.5% stake
RESUME: Director of Cablevision since 1991
President since 1998
Chief executive since 1995
Chairman of Madison Square Garden since 1999
Chief executive of Rainbow Media Holdings, a subsidiary, 1992-95
Vice president of the company, 1987-92
Battles: Fighting with Mayor Michael Bloomberg to block West Side stadium for Jets
vurbano said:
I'd rather a 12" B&W with a foil antenna.
I think that if they weren't going to keep putting money it to V* or product deveolpment, than they would have just shut the doors. So this might actually be a possitive.
rtt2 said:
And this is what is strange. This article stays something completely different than what the NY Times reported how the meeting ended.
Because leaning is not "victory" for junior as the other article proclaimed. Is this nonsense written based on someone whispering they are leaning?hbk409 said:
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