source: http://www.nynewsday.com/business/ny-bzvoom4176533mar15,0,2737474.story?coll=nyc-business-headlines
Doom and Voom (NYNewsDay) 03.15.05
Charles Dolan's ally John Malone says he has doubts about the satellite company Dolan is trying to save...
BY HARRY BERKOWITZ
STAFF WRITER
March 15, 2005
(NYNewsDay) John Malone, the cable pioneer who joined Cablevision's board as part of a shake-up by chairman Charles Dolan, expressed doubts yesterday about the Voom satellite TV service that Dolan is trying to rescue.
Malone said the advantage Voom had held in using new technology to accommodate high-definition channels was vanishing in the face of advances by cable and satellite TV competitors.
"I believe that the window is closing for them," Malone said of Voom's initial edge. "They may still be able to squeak through it. They may find existence as a subset of one of the major two distribution systems with that. I don't know."
Malone, speaking on a conference call with analysts to discuss quarterly earnings for Liberty Media International, where he is chairman, said he had rejected offers to invest in a service like Voom last year.
"We were offered on a number of occasions an opportunity to participate in a third satellite competitor, and we declined to participate because we didn't think that the risks were warranted by the potential returns," Malone said. "So I wouldn't do it with my money."
He did not say whether Voom was the venture seeking Liberty Media's investment.
Malone said he joined the board of Cablevision Systems Corp. "because Chuck Dolan asked me to, and he's been a friend for 40 years. And it seemed like I might be helpful to him in terms of settling things down for him."
Satellite Business News reported that Dolan met with EchoStar Communications chairman Charles Ergen in Denver last week to try to alter the deal Cablevision made to sell Voom's sole satellite for $200 million. But little or no progress was made, the trade publication said. Without the satellite, it will be difficult for Voom to survive, analysts said.
Dolan ousted three directors earlier this month after the old board, including his chief executive son, James, ordered that Jericho-based Voom, which had $660 million in losses last year, be shut. He then named five new directors, including Malone. The overhauled 15- member board has given Dolan until March 31 to come up with a way to rescue Voom and take it off Cablevision's hands.
Dolan has put up $10 million of his own cash and Cablevision stock to help fund Voom.Cablevision's stock rose 56 cents, or 1.95 percent, yesterday to close at $29.35.
Copyright © 2005, Newsday, Inc.
Doom and Voom (NYNewsDay) 03.15.05
Charles Dolan's ally John Malone says he has doubts about the satellite company Dolan is trying to save...
BY HARRY BERKOWITZ
STAFF WRITER
March 15, 2005
(NYNewsDay) John Malone, the cable pioneer who joined Cablevision's board as part of a shake-up by chairman Charles Dolan, expressed doubts yesterday about the Voom satellite TV service that Dolan is trying to rescue.
Malone said the advantage Voom had held in using new technology to accommodate high-definition channels was vanishing in the face of advances by cable and satellite TV competitors.
"I believe that the window is closing for them," Malone said of Voom's initial edge. "They may still be able to squeak through it. They may find existence as a subset of one of the major two distribution systems with that. I don't know."
Malone, speaking on a conference call with analysts to discuss quarterly earnings for Liberty Media International, where he is chairman, said he had rejected offers to invest in a service like Voom last year.
"We were offered on a number of occasions an opportunity to participate in a third satellite competitor, and we declined to participate because we didn't think that the risks were warranted by the potential returns," Malone said. "So I wouldn't do it with my money."
He did not say whether Voom was the venture seeking Liberty Media's investment.
Malone said he joined the board of Cablevision Systems Corp. "because Chuck Dolan asked me to, and he's been a friend for 40 years. And it seemed like I might be helpful to him in terms of settling things down for him."
Satellite Business News reported that Dolan met with EchoStar Communications chairman Charles Ergen in Denver last week to try to alter the deal Cablevision made to sell Voom's sole satellite for $200 million. But little or no progress was made, the trade publication said. Without the satellite, it will be difficult for Voom to survive, analysts said.
Dolan ousted three directors earlier this month after the old board, including his chief executive son, James, ordered that Jericho-based Voom, which had $660 million in losses last year, be shut. He then named five new directors, including Malone. The overhauled 15- member board has given Dolan until March 31 to come up with a way to rescue Voom and take it off Cablevision's hands.
Dolan has put up $10 million of his own cash and Cablevision stock to help fund Voom.Cablevision's stock rose 56 cents, or 1.95 percent, yesterday to close at $29.35.
Copyright © 2005, Newsday, Inc.
