source: http://www.nypost.com/business/42492.htm
DOLAN'S VOOM A LONG$HOT: MALONE (NYPost) 03.15.05
By TIM ARANGO
March 15, 2005 -- (NYPost) Cable pioneer John Malone said yesterday he doubted that Cablevision patriarch Chuck Dolan's satellite television plans will be a success.
Malone's comments were surprising, given that about two weeks ago he was handpicked by Dolan to join Cablevision's board following a boardroom drama over the future of Voom, the fledgling satellite venture that has been Dolan's pet project.
"I wouldn't do it with my money," Malone said yesterday on a conference call with investors to discuss earnings at his Liberty Media International. "We were offered on a number of occasions an opportunity to participate in a third satellite competitor and we declined because we didn't think the risks were warrented by the potential returns."
Malone also runs the U.S.-based Liberty Media.
About two weeks ago Dolan took control of Cablevision's board of directors after a nasty battle with his son, Cablevision CEO Jimmy Dolan, over the future of Voom.
Jimmy Dolan and other board members had refused to continue funding Voom, which has lost an estimated $500 million for the company.
The elder Dolan has set up a separate company and is trying to reach a deal to buy Voom's assets.
Dolan has sold about $10 million of company stock to help with start-up money, but will need much more to keep the business operating — Voom had been burning through about $80 million cash per quarter.
He has sought to differentiate Voom by offering more high definition channels. But it has been slow to catch on and has just 26,000 customers.
"I believe the window is closing for them," Malone said. "They may be able to squeak through it. They may find an existence as a subset of one of the two major distribution systems."
NEW YORK POST is a registered trademark of NYP Holdings, Inc. NYPOST.COM, NYPOSTONLINE.COM, and NEWYORKPOST.COM
are trademarks of NYP Holdings, Inc. Copyright 2005 NYP Holdings, Inc. All rights reserved.
DOLAN'S VOOM A LONG$HOT: MALONE (NYPost) 03.15.05
By TIM ARANGO
March 15, 2005 -- (NYPost) Cable pioneer John Malone said yesterday he doubted that Cablevision patriarch Chuck Dolan's satellite television plans will be a success.
Malone's comments were surprising, given that about two weeks ago he was handpicked by Dolan to join Cablevision's board following a boardroom drama over the future of Voom, the fledgling satellite venture that has been Dolan's pet project.
"I wouldn't do it with my money," Malone said yesterday on a conference call with investors to discuss earnings at his Liberty Media International. "We were offered on a number of occasions an opportunity to participate in a third satellite competitor and we declined because we didn't think the risks were warrented by the potential returns."
Malone also runs the U.S.-based Liberty Media.
About two weeks ago Dolan took control of Cablevision's board of directors after a nasty battle with his son, Cablevision CEO Jimmy Dolan, over the future of Voom.
Jimmy Dolan and other board members had refused to continue funding Voom, which has lost an estimated $500 million for the company.
The elder Dolan has set up a separate company and is trying to reach a deal to buy Voom's assets.
Dolan has sold about $10 million of company stock to help with start-up money, but will need much more to keep the business operating — Voom had been burning through about $80 million cash per quarter.
He has sought to differentiate Voom by offering more high definition channels. But it has been slow to catch on and has just 26,000 customers.
"I believe the window is closing for them," Malone said. "They may be able to squeak through it. They may find an existence as a subset of one of the two major distribution systems."
NEW YORK POST is a registered trademark of NYP Holdings, Inc. NYPOST.COM, NYPOSTONLINE.COM, and NEWYORKPOST.COM
are trademarks of NYP Holdings, Inc. Copyright 2005 NYP Holdings, Inc. All rights reserved.
