Cablevision Board To Debate Voom Fate

[Sean Mota]

You appear to be stating this as a fact. What's your source to make this credible?
Or is your statement more of an opinion?

There are two different sources stating quite frankly different stories:

1 - The NY Times: says, "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."

Look at the word used SALE not shutting down the service.

2 - The THE WALL STREET JOURNAL, says "The company has funded the service, which lost $75.3 million in the third quarter of last year, only until the end of the month, people said."
The WSJ is stating as a fact that in 12 days the Service will be shut down.

These are the only two statements that matter. We will see in 12 days what happens. For now VOOM is not shutting down until... 12 days...according to the WSJ. We will see whether they are right or not.

 

[vurbano]

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.

I know Dish SD sucks but their HD is supposed to be the best. Quality that is. I dont like the idea of going back to D*. Think about D* for a minute. Who recently took over? Rupert Murdoch, the King of 480p widescreen and 15 mbps FOX HD, who has also downrezzed many of D*'s HD channels to 1280x1080i (NOT an HD format) instead of 1920x1080i and cut bandwidth on them. HDnetmovies runs sometimes at 7-9 mbps!! Picture quality is NO WHERE in Ruperts past and I wouldnt count on it in his future.

 

[nuclearmeltdown2046]

Maybe Cablevision should take a LEAP of faith & open VOOM up for High Potential Investers like Paul Allen and others who see future technogy for what it is and make it grow into a billion dollar industry (If there even interested for that matter).
They have a good thing happining /w VOOM but I think they need to rethink there Stability and Strategy ,, bite the bullet and get some help ......

I'm new here so hit me /w flames ...........I'm OK with that

,,.....................................NM2046

 

[hbk409]

has anyone noticed that after taking a dive yesterday the stock is going back up again? maybe they talk about a sell off or shutting down voom to get the stock higher, then sell the cable company at a higher price. and invest it into voom

 

[DarrellP]

Here's another one from today.

This is great news:

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, senior vice president for business development at Crutchfield in Charlottesville, Va.

 

[mike123abc]

Well the WSJ has not said that the service will be shut down in 12 days (2/1/05) just that the current budget only pays through then. It is quite possible that they said no to some big plan that Dolan Sr wanted funded and now he will have to present "PLAN B" a much less ambitious plan to continue operations with a much smaller budget.

This was a board meeting by conference call. They can quickly get back on the phone and approve something if needed. It is not like they have to all fly in from different parts of the world to have a meeting requiring months of planning...

 

[Sean Mota]

Here's another one from today.

This is great news:

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, senior vice president for business development at Crutchfield in Charlottesville, Va.

That was posted yesterday see here

 

[Johnathan]

Guess I am glad that I am renting my STB from VoOm ! Damn I was excited about the 70 channels of HD coming in the near future. Also I couldn't wait for the DVR ! Who knows maybe it will be bought and continue . Johnathan

 

[vurbano]

"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, senior vice president for business development at Crutchfield in Charlottesville, Va."

This writer obviously is clueless. Crutchfield a key outlet???? ROTFLMFAO!!!!

 

[Lobstah]

I also think that the statement by WSJ that VOOM is only funded through the end of the month is NOT the same as saying VOOM is shutting down at the end of the month. The former is a fact, the latter is a conclusion/assumption that someone came up with based on the fact.

Two different things.

Lob

 

[vurbano]

"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. "

I think that says it all right there.

 

[Sean Mota]

Well the WSJ has not said that the service will be shut down in 12 days (2/1/05) just that the current budget only pays through then. It is quite possible that they said no to some big plan that Dolan Sr wanted funded and now he will have to present "PLAN B" a much less ambitious plan to continue operations with a much smaller budget.

This was a board meeting by conference call. They can quickly get back on the phone and approve something if needed. It is not like they have to all fly in from different parts of the world to have a meeting requiring months of planning...

Mike,

I disagree with you. The WSJ knew what they were saying when it said that the current budget only pays through 1/31/05. If there is no budget on 2/1/04, you are basically killing the whole operation. Companies of this size work on a budget and if there is none to draw money from... well.. you are calling for a shutdown. Plain and simple.

 

[kfried001]

This kind of pisses me off. Isn't VOOM only 1 1/2 old? And there already jumping ship. They didn't really give it a chance. They're entering a market with two very big and well established companies ruling it. And they did something neither of them could. That's provide the most HD ANYWHERE. Maybe it for the best. Maybe someone that has a pair will buy VOOM and continue it's mission.


Please someone correct me if I'm wrong or over reacting.

Was XM radio or Sirus profitable there first couple of years of service. I don't think so.

--------------------------------------------------------------------------
Look at Sirius. They were the underdogs for a long time and the investors thought they should pull the plug because XM was kicking butt. Now the tides have turned. You can't give up on a new venture for 3 years. This really surprises me that people like Dolan's son could be so short-term minded. This is even bad for cablevision because he won't do anything unless there is a short-term gain.

 

[rollerfink]

Mike,

I disagree with you. The WSJ knew what they were saying when it said that the current budget only pays through 1/31/05. If there is no budget on 2/1/04, you are basically killing the whole operation. Companies of this size work on a budget and if there is none to draw money from... well.. you are calling for a shutdown. Plain and simple.

They didn't say that there definitely will be no budget on 2/1 though. Just that there isn't one now. They could approve funding for another 30 days, 6 months, a year, or not at all. It just means that by 2/1 they either have to have a new budget approved or shut down (or implement a sale strategy).

 

[rollerfink]

"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. "

I think that says it all right there.

He could open himself up to lawsuits from investors if he does that though. If he forces a board coup he may have to prove that the Voom business is in the best interests of shareholders and that could be difficult to do -- especially if it goes on to fail.

 

[kfried001]

Stupid James!!!!! Sorry Mr. Dolan that your son isn't too bright.

Can he fire his son?

 

[Indy]

I guess we will have the answer in 2 WEEKS!!! Where have I heard this before? Hmmm....I guess we will have the answer in 2 WEEKS!!! Where have I heard this before? Hmmm....

 

[Sean Mota]

They didn't say that there definitely will be no budget on 2/1 though. Just that there isn't one now. They could approve funding for another 30 days, 6 months, a year, or not at all. It just means that by 2/1 they either have to have a new budget approved or shut down (or implement a sale strategy).

Glad you are able to clarify this for everyone. Some of us reading the WSJ had already made up our minds stating that there was going to be a shutdown on 1/31/05 because it is implied in the reading but not specified that the budget could be changed or budgeted once more for more time. This is why in all these reports you need to read between the lines of what is happening.

 

[fredfa]

It would be nice for Cablevision to issue a statement denying (or at least clarifying) the press reports.

In the meantime, for those of us trying our best to read tea leaves, here is a slightly different version of events from Wednesday's (Rupert-owned) NY Post:
------------------------------------------------------------
"...Chuck Dolan, the founder and patriarch at the Long Island-based cable operator, isn't giving up so easily on his dream of launching a nationwide satellite TV venture, despite a board vote in December that effectively shut down the operation.
Dolan's son, Jimmy Dolan, the company's CEO, is said to favor selling Voom.
Cablevision's board of directors was expected to further discuss the issue at its board meeting yesterday.
"An entrepreneur doesn't give up," major Cablevision investor Mario Gabelli told The Post. "Just because the board said no doesn't mean he'll give up. He's fighting them, and it could go either way."
Gabelli runs Gabelli Asset Management, which is the second-largest holder of Cablevision stock after the Dolan family.
Last month, Cablevision announced that it was shelving plans for a spin-off of Voom and the three cable channels that funded the venture, and opting to seek "strategic alternatives" — which in Wall Street parlance usually means a sale.
A source told The Post yesterday that Chuck Dolan lost a board vote by an 8-6 margin in December...."

 

[kfried001]

Now would be a perfect time to schedule a new installation. If VOOM discontinues operations, you will at least receive a free dish, OTA antenna and perhaps get to keep the receivers as well.

Anyway, I don't feel things are as hopeless as some people are predicting. VOOM is a great idea---ahead of its time---and they appear to have righted the ship and are headed in the right direction...too bad they are almost a full year behind schedule. While they MAY not be an attractive option for D* or E*, V* still has investment potential for the right partner(s).

Lot's of things going on behind the scenes, I'm sure. Perhaps Scott will share some of his information before it becomes public knowledge?

Sorry, I don't see Scott posting about this anymore...I can't imagine VOOM shutting down. Isn't there a law to protect consumers who purchased equipement; that the company has to stay in business for a certain period of time?

Scott, now would be a good time to chime in since you said VOOM was not going anywhere.