Cablevision talks about liabilities of shutting down VOOM

[Walter L.]

source: http://www.multichannel.com/article/CA507983.html

Also at the conference, Cablevision chief financial officer Michael Huseby offered a little more insight to the liabilities it will have to assume concerning its decision earlier this week to shut down its Rainbow DBS HD direct-broadcast satellite service, marketed as Voom.

Huseby said the biggest cash outlays will involve Rainbow DBS' obligation to Loral Space and Communications Ltd. -- estimated to be about $42.4 million, according to securities filings -- and for transponder leases.

According to the Form 10 filed by Rainbow Media Holdings LLC in November, Cablevision issued a $19.8 million irrevocable letter of credit to SES Americom Inc. as a security deposit for leases for 13 transponders.

However, what it will cost Cablevision to cancel service contracts for Voom is undetermined. Huseby said Rainbow DBS had several contracts for call-center service and other services, and it will have to negotiate with each party to cancel those deals.

Cablevision had planned to sell the remaining assets of Rainbow DBS -- it agreed to sell its satellite assets to EchoStar Communications Corp. for $200 million -- to Cablevision chairman Charles Dolan and his son, Cablevision chief information officer Thomas Dolan. But Monday, the company said it had ceased negotiating with the Dolan group and plans to shut down the service in 30 days.

Despite a press release by the Dolan group stating its desire to obtain financing for Rainbow DBS, Rutledge seemed to give little hope that Cablevision will seek other buyers for the Voom assets.

Asked if Cablevision would be receptive to other offers for Voom, Rutledge said, "I've been directed to close it down, which I am in the process of doing."

 

[bradley]

What the hell is going on at CVC?

Why is CVC so determined to trash it all?

I do know Charles "Chuck" Dolan is one of the most savvy bargainers on the Street; he'll get what he wants... in the end.

 

[vurbano]

What the hell is going on at CVC?

Why is CVC so determined to trash it all?

I do know Charles "Chuck" Dolan is one of the most savvy bargainers on the Street; he'll get what he wants... in the end.

The money they save in writeoffs outweighs what Dolan is offering?

or

They cant weasel out of their contracts for new sats unless they shut down?

or

This deal requires Dolan to sell his cablevision stock which would end all of their jobs?

 

[danielle_s]

Sean do you have any input on this particular topic or know someone that could shed some light for us?

 

[Sean Mota]

CVC is going about their business of shutting down Rainbow DBS because that is what they said in their PR after the letter of intent expired. They have an obligation to do so under that agreement or sell it to someone else. There is no one else besides Chuck Dolan who is willing to take it from them. At the same time negotiations are still happening. Biggest hurdle are the liabilities. That's is the 64K question. Once this is done, they will both depart silently. The fact that another website (www.voomllc.com) was put up by Rainbow DBS questions how much James Dolans has control of. I thought last night that after he shutdown the VOOM (www.voom.com) website, his next move would have been to shutdown the operation centers since this is what drawing money from them (installation, deinstallation, repairs, etc). He could have done that and leave a small staff for customer support. He did not do that. Is it too late to do that? probably not. But now that Sr. Dolan has answered to his shutdown of the Voom website, he will look foolish in the public.

I wonder if James will actually do something else....

 

[James Long]

The fact that another website (www.voomllc.com) was put up by Rainbow DBS ...

We have claims that it was done on command of Cablevision in one thread, but can we be sure? It seems that the fledgling company Voom HD LLC would be responsible for that domain if anyone.

Considering Charles Dolan's history in satellite I am suprised that he and Tom have remained so mute on this matter. Voom HD LLC SHOULD have registered a site for corporate activity when they got the idea February 10th. They SHOULD have posted a public letter of intent there for all to read (not the one they signed with Cablevision, but one for the public). They SHOULD have handled this like Martha Stewart by clearly giving their side of the story on their own web site. But they didn't.

They remained silent through the two weeks they had to sign an agreement.
They put out their first, and so far only, press release on Monday night.
They are allowing Cablevision to control the media and the story.

For Voom HD LLC to win they need to seize control - not just of the RainbowDBS assets that make up Voom but of the story and the media.

Three things suprise me at this point:
1) That the real VOOM.COM awoke for a brief period today - perhaps for a technical reason, perhaps due to technical error
2) That even though CVC is going through the motions of shutting down including official notification to employees, that the call centers are indeed still taking orders 24hrs later. If James Dolan controls enough to kill the website why can't he stop taking orders?
3) Cablevision has filed no 8K with the SEC notifying their shareholders that the offer from Voom HD LLC expired and that Voom was shutting down. And the Monday Night press release is not on the Cablevision website.

I believe there is hope for Voom - IF Voom HD LLC gets their act together.

JL

 

[Vicki]

We have claims that it was done on command of Cablevision in one thread, but can we be sure? It seems that the fledgling company Voom HD LLC would be responsible for that domain if anyone.(snip)JL

Would you believe there was any significance to this? http://www.satelliteguys.us/showthread.php?p=379495#post379495
Frogs have it easy...they get to eat what bugs them...

 

[James Long]

Would you believe there was any significance to this? http://www.satelliteguys.us/showthread.php?p=379495#post379495[/img]

I like post 16 of that thread:

FYI...The Voom sponsored links on Google still point to www.voom.com

Wouldn't it be cool to buy an ad contract the day after someone else's contract expires and use a similar or the same graphic/text to link to your site? A lot of people do that with misspelled and expired domain names to capture hits and sales. Why not do it with doubleclick ads? How well do they check that the person buying the ad has a right to use the logo and keyword?

Even Google had that problem where people were buying sponsored links that were keyed to competitors websites. Don't trust web advertisers to be who they appear to be. Beware of companies with no brick and mortar!

Would you believe there was any significance to this?

I believe there is hope for Voom - IF Voom HD LLC gets their act together.​

JL

 

[jeslevine]

when will they make a movie of this?

 

[Vicki]

I like post 16 of that thread:
Wouldn't it be cool to buy an ad contract the day after someone else's contract expires and use a similar or the same graphic/text to link to your site? A lot of people do that with misspelled and expired domain names to capture hits and sales. Why not do it with doubleclick ads? How well do they check that the person buying the ad has a right to use the logo and keyword?

I suspect that the "powers that be" are already in the midst of correcting that little problem, just like they corrected it here. Chuck and Tom have their eye on the ball, and while it may not be evident in every corner simultaneously, I'm sure they will cover all the bases.

Even Google had that problem where people were buying sponsored links that were keyed to competitors websites. Don't trust web advertisers to be who they appear to be. Beware of companies with no brick and mortar!

Very conciliatory AND very true...however...

Would you believe there was any significance to this?

I believe there is hope for Voom - IF Voom HD LLC gets their act together.​

NOPE!! Not at this late date!! I've read your venom too long in too many places. Then you play nice for a while before you spew again. The statement is true, and you'd have to be blind not to believe it...but your current tagline belies your intent.

JL

[/QUOTE]

 

[danielle_s]

don't get to close vicki, racoons that play in that much garbage tend to carry rabies. BE CAREFUL

 

[Vicki]

Yeah...you're right...don't wanna get hurt by Gutter's wife, and definitely don't wanna get bit by a rabid critter!

 

[James Long]

your current tagline belies your intent.

JL

Oh, that's the Voom EEK - as in suprised, a feeling many Voomers should have.

I also have

for "there is hope" posts. (I don't get to use that one much.)

would be more the intent you are incorrectly placing on

.

HTH HAND

BTW: You have inspired me to add this one to the collection for Voomers ...

JL

 

[danielle_s]

Your just moking VOOM JL, get a life and climb back into that hole you climbed out of.