Dolan to invest $400M in Voom

[hudson]

Cablevision chairman goes Voom?

WSJ: Charles Dolan tells FCC he'll invest $400M in satellite service; seeks to block dish sale.
March 30, 2005: 6:41 AM EST

Cablevision Systems Corp. (CVC) Chairman Charles Dolan, in a further sign that he is determined to keep his Voom satellite service operating, has told the Federal Communications Commission that he is in the process of making a $400 million personal commitment to the business, The Wall Street Journal reported Wednesday.

Cablevision also is talking to a group of private equity firms led by Kohlberg Kravis Roberts & Co. about possibly joining their bid for Adelphia Communications Corp. (ADELQ), which is in the final stages of being auctioned.

Analysts are speculating that the joint bid with the private-equity firms might be tied in to Mr. Dolan's need to raise cash for Voom. Cablevision's discussions with the firms were reported Tuesday by the New York Times.


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In his filing with the FCC, Mr. Dolan also has taken the highly unusual step of challenging the decision made by Cablevision earlier this year to sell Voom's only operating satellite to EchoStar Communications Corp. (DISH) for $200 million . Mr. Dolan clearly is trying to block the sale so that he can buy the satellite himself.

The filing is the latest twist in his struggle to save Voom, and his willingness to invest $400 million of his own money raises the likelihood that he will put Cablevision on the block to finance the venture, analysts say.

 

[calikarim]

Keep fight alive

Mr Dolan Keep the fight alive we are with you 100%. Your Loyal voom subscribers.

 

[boatman]

Mr Dolan I am ready to invest in VOOM........

 

[riffjim4069]

I don't recall the details regarding the rift between Mark Cuban and the Dolan family, but who doesn't see the tremendous potential with Mark Cuban being a VOOM HD LLC business partner? Cuban can handle quite a bit of exclusive content in the channel 122 to 130 range - Dolan can provide the licensing vehicle for Ciname10 and the HDNet Movies - Cuban can use HDNet and VOOM exclusive content to create a package of HDNet channels: HDNet, HDNet Movies, HDNet Sports, HDNet Music, HDNet Arts & Entertainment, HDNet Lab (just kidding...), or whatever - Dolan can operate and maintain the VOOM satallite service - Cuban can sell HDNet packages to cable and satellite providers.

Somebody needs to suck up their pride and realize the HUGE growth potential for a VOOM/HDNet partnership. Ten million HD devices are expected to be sold this year and the average consumer is going to demand HD.

 

[GadgetRick]

Hmm...

Looks like those people who said he was getting funding were wrong. He's dipping into his own pocket to fund Voom. If that was his intention from the start he could have done so at any time.

I guess nobody is interested in pumping money into Voom....

The Rickster

 

[Sean Mota]

Looks like those people who said he was getting funding were wrong. He's dipping into his own pocket to fund Voom. If that was his intention from the start he could have done so at any time.

I guess nobody is interested in pumping money into Voom....

The Rickster

Rick no one here stated the source of the funding. Based on inside information it was posted that funding was in place (the source did not matter and it really does not matter). You still do not get it that it is not as easy as just getting funding in place. There's a lot of ends that need to be tied before Voom is completly out of Cablevision domain. Again, admit that you were wrong about VOOM not having fund in place. I also read the following statement:

Analysts are speculating that the joint bid with the private-equity firms might be tied in to Mr. Dolan's need to raise cash for Voom. Cablevision's discussions with the firms were reported Tuesday by the New York Times.

Which contradicts your statement.

I guess nobody is interested in pumping money into Voom....

 

[salsadancer7]

GO Chuck GO!! Wondering if Cablevision will extend the deal they made with Chuck a few months ?

 

[GadgetRick]

Not wrong...

Rick no one here stated the source of the funding. Based on inside information it was posted that funding was in place (the source did not matter and it really does not matter). You still do not get it that it is not as easy as just getting funding in place. There's a lot of ends that need to be tied before Voom is completly out of Cablevision domain. Again, admit that you were wrong about VOOM not having fund in place.

Actually Sean, it was released in more than one place the money is coming from Dolan so I wasn't wrong. He has NOT obtained funding elsewhere or he wouldn't be writing a check from his own pocket for the whole $400 million.

And you don't get it that I have been saying EXACTLY what you have said, "it is not easy to get funding in place." They need money and nobody else seems to be willing to step up and provide funding.

It is interesting how people around here ignore more than one source saying Dolan is putting HIS OWN MONEY up and would rather believe an, "inside source."

The Rickster

 

[Sean Mota]

Actually Sean, it was released in more than one place the money is coming from Dolan so I wasn't wrong.

Rick, there is no wisdom in that. Wall Street has been saying the same. We all have been saying the same. You said, "there was no funding".

He has NOT obtained funding elsewhere or he wouldn't be writing a check from his own pocket for the whole $400 million.

Again there's no wisdom in that either. We know this because there has been nothing said about it and everyone knew that the only way to do it was to take money out of his own pocket. Who cares if he gets it from someone else or he puts it himself. Get it? the money is still there.

And you don't get it that I have been saying EXACTLY what you have said, "it is not easy to get funding in place." They need money and nobody else seems to be willing to step up and provide funding.

No Rick. That is not true. You have not been saying this. Do you want to go back and quote yourself how adamant you were saying that there was no funding in place (whether it came from Mr. Dolan or any other source). Everything is recorded here and you Rick were very adamant about it.

It is interesting how people around here ignore more than one source saying Dolan is putting HIS OWN MONEY up and would rather believe an, "inside source."

Rick, do not try to twist the issue here. He never said that the money was coming from another source. He said that the funding was in placed. He did not specify the source. You are twisting the issue again.

 

[r.jones1116]

Nothing irritates me more than someone who can not admit that their wrong. Rickster is going on my ignore list.

 

[GadgetRick]

Thanks for the announcement r.jones...I'll take that under advisement...

Sean, what, exactly, are you trying to argue with me about? I'm curious because you're really not making any sense here. I said, and you're more than welcome to waste your time and repost what I've posted, that Dolan has had problems obtaining funding from other sources. I also have said, again, feel free to check, Dolan would need to step up with his own money (not in those words) because nobody else is adding to the funding. What, exactly, is wrong with what I said here and have been saying?

Are you claiming there has been nothing saying Dolan is using his own money? Try rereading the original post in this very thread. It's very clear in saying he has told the FCC he is going to give $400 million out of his own pocket. How was I wrong?

And yes Sean, I would like you to quote me. I HAVE been saying it was difficult for funding to be put in place. That's been ALL I've been saying. So please show me where I'm NOT saying that. In saying that, I have said (you are correct on this) funding was not in place because, well, it wasn't as far as the public is concerned. If it was in place they weren't telling anyone. Am I saying it wasn't in place and they just weren't telling us? No, I was saying, as far as the public (i.e. people like me) is concerned funding was NOT in place. That was not an incorrect statement.

And how about you not trying to twist things around. I never said it was good, bad or otherwise that he is funding it out of his own pocket. So what's your beef there?

People around here need to chill. If someone says anything but the, "party line," you get jumped all over. Now it's coming from the moderators...

The Rickster

 

[dlm10541]

If I can read it says he is committing $400MM himself. It says nothing about what else may or may not be in place. I have to believe there are others involved or other plans like the sale of Cablevision as a contingency because this amount doesn't cover estimates of required funds for next year or so.

 

[Sean Mota]

Thanks for the announcement r.jones...I'll take that under advisement...

Sean, what, exactly, are you trying to argue with me about? I'm curious because you're really not making any sense here. I said, and you're more than welcome to waste your time and repost what I've posted, that Dolan has had problems obtaining funding from other sources. I also have said, again, feel free to check, Dolan would need to step up with his own money (not in those words) because nobody else is adding to the funding. What, exactly, is wrong with what I said here and have been saying?

Are you claiming there has been nothing saying Dolan is using his own money? Try rereading the original post in this very thread. It's very clear in saying he has told the FCC he is going to give $400 million out of his own pocket. How was I wrong?

And yes Sean, I would like you to quote me. I HAVE been saying it was difficult for funding to be put in place. That's been ALL I've been saying. So please show me where I'm NOT saying that. In saying that, I have said (you are correct on this) funding was not in place because, well, it wasn't as far as the public is concerned. If it was in place they weren't telling anyone. Am I saying it wasn't in place and they just weren't telling us? No, I was saying, as far as the public (i.e. people like me) is concerned funding was NOT in place. That was not an incorrect statement.

And how about you not trying to twist things around. I never said it was good, bad or otherwise that he is funding it out of his own pocket. So what's your beef there?

People around here need to chill. If someone says anything but the, "party line," you get jumped all over. Now it's coming from the moderators...

The Rickster

Rick here a few of your posted quotes. Let me know what else I have to say about your postings:

http://www.satelliteguys.us/showpost.php?p=407413&postcount=146

Now, does it say, "We don't have the funding yet,"? No it doesn't. However, and let's try and use our heads here, if he HAD the funding when this SEC filing (yes, it's an SEC filing meaning it's about as official as it can get for a public company), then why is he throwing in $10m of his money to float them until the end of the month? If he has funding or had planned (when this was filed) to fund it out of his own pocket, why hasn't he done so? Why has there been NO press release indicating as such???

Please, show ME some evidence (other than some stupid memo) showing me it is just logistics at this point and I'll HAPPILY admit my OPINION was incorrect.

More of no funding in place

http://www.satelliteguys.us/showpost.php?p=403625&postcount=118

You are correct in saying it could mean anything but, in essence, it means the funding is not officially in place....period. If it were in place they would announce it as being in place. Could they be close? Sure. But, as many friends have told me in the past, close only counts in horsehoes and hand grenades. Close doesn't mean it's in place.

More of the no funding nonsense that you have been spreading

http://www.satelliteguys.us/showpost.php?p=400091&postcount=85

Again, I don't think anyone here has said it won't cost a lot of money to get a satellite business off the ground (I know I NEVER said that). However, someone still has to step up and spend the money. That has NOT happened yet (no matter what the other misguided poster thinks). If they can get enough money to keep it going they might be able to become a contender. Until they obtain funding to make it that long they are still in trouble.

Here you say that Funding is not in place

http://www.satelliteguys.us/showpost.php?p=377229&postcount=247

I won't comment on the message on the Voom website but I will comment on the facts I was talking about. Someone said something about the 2nd memo to Voom saying they had funding. Well, if you want to read the FACTS, it says financing for the purchase of Voom is in place. The purchase isn't the problem, the problem is finding enough funding to keep it going. So I'm not picking facts to fit my theory, rather, I'm reading the facts to form my theory. They do NOT have funding in place (that we know of) to keep the operation going.

Here, you say that Mr. Dolan is not going to buy VOOM

http://www.satelliteguys.us/showpost.php?p=291777&postcount=3

Why is it nobody around here believes Dolan is a business person?? He's NOT going to buy Voom back. It's a LOSING proposition and he's just NOT going to use his OWN money to fund it! If he were going to do that he would have bought the satellite and/or split off from CVC once CVC gave him heat about the costs (you can't possibly believe that meeting last week was the first time he got heat from CVC??).

Here you are going to be SHOCKED if he uses his OWN $$$$

http://www.satelliteguys.us/showthread.php?p=284199#post284199

You're correct in saying people don't get rich by playing it safe, however, they STAY rich by playing it safe. How much risk do you really think Dolan Sr. has taken with Voom? He's, what 78 or 79 years old now and, it's not like it cost him anything out of his pocket. Oh sure, it costs in stock value but the stock will bounce right back once Voom is sold/closed. So, in reality, Dolan Sr. has taken little to no risk in his venture.

Again, I'd be shocked if he pooled his OWN money to try and buy Voom. I wouldn't be surprised, however, if he was talking to investors trying to raise funds to purchase it. I just don't think he'll get a very warm reception from them.

 

[GadgetRick]

Ok, first of all, I'm not sure exactly what you're arguing about me saying the funding was not in place. I have ADMITTED this (read my last post).

And I never denied saying Dolan wouldn't buy the company and never denied saying I'd be shocked (because I am). So again, what, exactly, are you trying to argue? I'm really scratching my head here because you seem to be looking for an argument where there is none.

The Rickster

 

[jnardone]

I don't understand the issue. Is there two different 400 Millions? One that Charles Dolan told the Wall Street Journal hew was investing himself and one that he told the FCC that VOOM HD was still in the process of raising from investors (of which he is one). Or is it the same 400 million and he is just telling the FCC that even if he can't raise it from investors then he will put it up himself? If VOOM HD has to buy the rainbow one satellite from cablevision for $200 million (they really couldn't pay any less or Charles would be in trouble with CVC shareholders) and they got the rest of VOOM for free just by assuming the liabilities then how long would the remainign $200 million last? Isn't there rent on Rainbow 2 plus a cancellation penalty on the satellite construction contract that pretty much account for the whole other 200 million?

 

[James Long]

VOOM HD is in the process of obtaining financial commitments from its controlling investors in the amount of $400 million in cash and credit;​

"In the process". Does that mean they HAVE the funding or not?
If the source is C Dolan why is he having trouble making the commitment?

JL
Source: Voom HD's Joint Petition to Deny the license transfer.

 

[Sean Mota]

Ok, first of all, I'm not sure exactly what you're arguing about me saying the funding was not in place. I have ADMITTED this (read my last post).

And I never denied saying Dolan wouldn't buy the company and never denied saying I'd be shocked (because I am). So again, what, exactly, are you trying to argue? I'm really scratching my head here because you seem to be looking for an argument where there is none.

The Rickster

Rick,

if you do not see it, I guess I have to give up and just say: You are the absolute genius when it comes to this matters. I give up

 

[gutter]

I put Gadgetrick on ignore weeks ago and still have to see that he has blinders on. Perhaps we wants to use my cane. It is he that needs to chill.

 

[RRaymo]

Hrm. This particular Rick is thinking about changing his name.

As to the funding vis-a-vis Cuban? I've been wishing Mark and Chuck would find a way to work together for a while now... Sept. 2004 to be exact?

There is some personal stake in the matter as I miss HD-Net. Grin.

RRaymo

 

[Tvlman]

RE: Cuban Article

Cuban can't even program HDNET creatively enough to be as interesting as EQUATOR, RUSH, RAVE, MONSTERS....would not let him fool with VOOM. The rest of his schedule is "Hogan's Heroes, Charlie's Angels" and series that had a short run plus PBS and Discovery programs. No thanks!