Great News - Voom Is Here To Stay!!
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Fulcrum notes that Chuck/Tom are essentially going to keep Voom going. While they sold the Rainbow 1 satellite to DISH, the firm believes they are likely planning to use their lease from SES Americom for Rainbow 2 as a way to maintain the Voom service. The sale of the 21 Voom HD cable networks removes any remaining investor concerns that CVC would continue to fund the programming side of VOOM, even after the distribution side of the business was sold off to Echostar. Fulcrum feels that this clearly shows Chuck Dolan's obsession with Voom and his complete lack of interest in the core cable business. Which could indicate a willingness to sell the cable assets. Chuck Dolan will most likely need to sell Cablevision to raise capital (he controls the family trust with 67.2mm class B and 1.05mm class A equating to $1.8B at current CVC prices). The firm further notes that if CVC is really "for sale" it could throw a significant "wrench" into the Adelphia auction process. The firm feels that Time Warner (TWX) (along with Comcast) should not buy any cable assets, but if they do make an acquisition, they view CVC as far more important strategically than Adelphia
Cablevision Chair to Buy Remainder of Voom
02.10.2005, 08:14 PM
Charles Dolan, founder and chairman of Cablevision Systems Corp., is not one to give up on his satellite TV plans.
After being forced by Cablevision's board of directors to sell fledgling TV service Voom's only satellite to EchoStar Communications Corp. for $200 million, Dolan said late Thursday that he is planning to buy out the remainder of Voom's assets.
The deal includes Voom's 26,000 customers, 21 exclusive high definition channels, various spectrum licenses and leased capacity.
Under the plan, Dolan, along with his son Tom Dolan and some other Cablevision shareholders, will form a private company that will assume Voom's liabilities and protect Cablevision from any losses.
Cablevision has signed a letter of intent agreeing to the transaction, but the board must still approve final terms.
The deal would help the Bethpage, N.Y., cable operator avoid the costs of shutting down the TV service, which has continued to accept customers even after agreeing to sell its satellite.
Wall Street analysts were upbeat about the plan.
"It highlights that Cablevision does want to continue to separate from the Voom venture," said Aryeh Bourkoff of UBS. Bourkoff couldn't say exactly how much Cablevision might save by handing over the assets to another company, but says it is likely "significant."
Bourkoff does not own shares nor does his firm have an investment banking relationship with the company.
The next question, analysts said, is figuring out how Dolan will fund Voom.
Since its inception, Voom has burned through roughly $1 billion or more, by some estimates, but added just 26,000 subscribers. In the third quarter alone, the business lost $75.3 million.
Since the Dolan agreed to sell Voom, speculation has swirled that the cable pioneer might decide to sell his Cablevision stake. Time Warner Inc., which owns cable systems in adjoining areas, was seen as the most likely buyer, but recently put in a joint bid with Comcast Corp. for the bankrupt cable operator Adelphia Communications Corp.
02.10.2005, 08:14 PM
Charles Dolan, founder and chairman of Cablevision Systems Corp., is not one to give up on his satellite TV plans.
After being forced by Cablevision's board of directors to sell fledgling TV service Voom's only satellite to EchoStar Communications Corp. for $200 million, Dolan said late Thursday that he is planning to buy out the remainder of Voom's assets.
The deal includes Voom's 26,000 customers, 21 exclusive high definition channels, various spectrum licenses and leased capacity.
Under the plan, Dolan, along with his son Tom Dolan and some other Cablevision shareholders, will form a private company that will assume Voom's liabilities and protect Cablevision from any losses.
Cablevision has signed a letter of intent agreeing to the transaction, but the board must still approve final terms.
The deal would help the Bethpage, N.Y., cable operator avoid the costs of shutting down the TV service, which has continued to accept customers even after agreeing to sell its satellite.
Wall Street analysts were upbeat about the plan.
"It highlights that Cablevision does want to continue to separate from the Voom venture," said Aryeh Bourkoff of UBS. Bourkoff couldn't say exactly how much Cablevision might save by handing over the assets to another company, but says it is likely "significant."
Bourkoff does not own shares nor does his firm have an investment banking relationship with the company.
The next question, analysts said, is figuring out how Dolan will fund Voom.
Since its inception, Voom has burned through roughly $1 billion or more, by some estimates, but added just 26,000 subscribers. In the third quarter alone, the business lost $75.3 million.
Since the Dolan agreed to sell Voom, speculation has swirled that the cable pioneer might decide to sell his Cablevision stake. Time Warner Inc., which owns cable systems in adjoining areas, was seen as the most likely buyer, but recently put in a joint bid with Comcast Corp. for the bankrupt cable operator Adelphia Communications Corp.
TheTimm said:Okay, I'm in. And next time I'm in an electronics store, if someone asks if I need any help I'll be sure to ask them if they have a Voom display I could look at.
i stated this in a previous post but it went no one replied, so just though i would give it a bump. Also by going into best buy or circuit city and asking an associate were is the voom display, i bet your answer would be one of the following:
1)Voom?? Never heard of them?
2)Dont have it. Dont know if we ever will.
3)They are going under, why would you want them? After (insert number) months they will be out of business.
i wouldnt bet on that, cablevision used to use best buy as an outlet for the optimum online svc. That lasted for about 3-5months then cablevision droped them and the only retail stores you can get ool is from compusa or circuit city. Dont know the whole story behind why they dropped best buy, just that they did.
Yippy !!!
Well I just VOOM installed this past Wednesday. The night before I found this site and was concerned that I had made a mistake but I figured I might as well try it out for as long as it lasts. Well guess what, it looks like I made a good choice. Cannot wait till I can spend a weekend watching all the HD I can get.
Thanks for this web site and all the posts.
Keep it up.
Well I just VOOM installed this past Wednesday. The night before I found this site and was concerned that I had made a mistake but I figured I might as well try it out for as long as it lasts. Well guess what, it looks like I made a good choice. Cannot wait till I can spend a weekend watching all the HD I can get.
Thanks for this web site and all the posts.
Keep it up.
Cablevision shares up on Voom sale to founder
Fri Feb 11, 2005 10:13 AM ET
NEW YORK, Feb 11 (Reuters) - Shares of Cablevision Systems Corp. (CVC.N: Quote, Profile, Research) jumped as much as 5 percent on Friday on news its founder is purchasing the rest of a failed satellite venture, elminating any further liabilities on the parent company.
Cablevision late on Thursday said its founder, Charles Dolan, has signed a letter of intent to purchase its Rainbow DBS business, which operated the money-draining Voom satellite television service.
Since its launch in 2003, the No. 3 U.S. satellite service, has weathered a torrent of Wall Street criticism, with long time observers wondering if Dolan, the highly respected creator of pay channel HBO, had lost his edge.
The sale has also led some analysts and longtime media industry veterans to believe that Cableivision may also be put on the block.
It "Clearly shows Chuck Dolan's obsession with Voom and his complete lack of interest in the core cable business, which could indicate a willingness to sell the cable assets," said said Richard Greenfield, an analyst at Fulcrum Global Partners, in a note to clients.
Time Warner Inc (TWX.N: Quote, Profile, Research) which owns cable systems in nearby Northeast regions and is in the middle of an estimated $17 billion bid for Adelphia Communications Corp.(ADELQ.PK: Quote, Profile, Research) , would be the obvious potential bidder.
Cablevision declined to comment on market rumors.
In January, the Bethpage, New York cable operator sold its Rainbow 1 satellite and rights to 11 Direct Broadcast Satellite frequencies to EchoStar Communications Corp. (DISH.O: Quote, Profile, Research) for $200 million.
Dolan and his son Tom have formed a new company, Voom HD LLC, and will purchase the remaining assets including 21 high definition channels, about 26,000 subscribers, various Ka-Band and multichannel video distribution and data services licenses, and a lease on a satellite.
"Yet another money pit has been removed," Greenfield said.
Cablevision shares were up 68 cents at $27.27 in morning trade on the New York Stock Exchange after earlier hitting a high of $28.05.
Fri Feb 11, 2005 10:13 AM ET
NEW YORK, Feb 11 (Reuters) - Shares of Cablevision Systems Corp. (CVC.N: Quote, Profile, Research) jumped as much as 5 percent on Friday on news its founder is purchasing the rest of a failed satellite venture, elminating any further liabilities on the parent company.
Cablevision late on Thursday said its founder, Charles Dolan, has signed a letter of intent to purchase its Rainbow DBS business, which operated the money-draining Voom satellite television service.
Since its launch in 2003, the No. 3 U.S. satellite service, has weathered a torrent of Wall Street criticism, with long time observers wondering if Dolan, the highly respected creator of pay channel HBO, had lost his edge.
The sale has also led some analysts and longtime media industry veterans to believe that Cableivision may also be put on the block.
It "Clearly shows Chuck Dolan's obsession with Voom and his complete lack of interest in the core cable business, which could indicate a willingness to sell the cable assets," said said Richard Greenfield, an analyst at Fulcrum Global Partners, in a note to clients.
Time Warner Inc (TWX.N: Quote, Profile, Research) which owns cable systems in nearby Northeast regions and is in the middle of an estimated $17 billion bid for Adelphia Communications Corp.(ADELQ.PK: Quote, Profile, Research) , would be the obvious potential bidder.
Cablevision declined to comment on market rumors.
In January, the Bethpage, New York cable operator sold its Rainbow 1 satellite and rights to 11 Direct Broadcast Satellite frequencies to EchoStar Communications Corp. (DISH.O: Quote, Profile, Research) for $200 million.
Dolan and his son Tom have formed a new company, Voom HD LLC, and will purchase the remaining assets including 21 high definition channels, about 26,000 subscribers, various Ka-Band and multichannel video distribution and data services licenses, and a lease on a satellite.
"Yet another money pit has been removed," Greenfield said.
Cablevision shares were up 68 cents at $27.27 in morning trade on the New York Stock Exchange after earlier hitting a high of $28.05.
So Dolan is either tired of Cablevision or realizes it may be in trouble, but doesn't want to lose VOOM. So Cablevision gets rid of the sat that he didn't want anyway, then sells the rest of the VOOM assetts to him, he cashes out, puts Cablevision up on the block...
Pretty funny
Lob
Pretty funny
Lob
A KEY POINT EVERYONE HAS MISSED SO FAR!
Dolan gets VOOM for FREE!!!!
He is just picking up liabilities and operating costs.
rtt2 said:
Dolan gets VOOM for FREE!!!!
He is just picking up liabilities and operating costs.
Recruitment mode....
Okay, my mistake.....I'll find some other way to search and identify! Is the large oval dish that I once had for D a sure sign?DucTape said:
hbk409 said:
Amen! I work with a company that has 15,000+ employees. I have mentioned Voom to many, many of them, including those I know have HDTVs and I have not encountered ONE person who has even heard of VOOM. I talk it up as much as I can. We need to become VOOM disciples I suppose. If you show it..they will come.
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ddlsmith said:
Won't matter, it has been said here and at AVS that D* has a contract with BB and CC to be the only DBS provider sold at the stores, that is why you don't see too many places selling both D* and E*.
For example:
Best Buy-D*
Circuit City-D*
Target-D* ( used to be E*, switched a couple of years ago)
Wal-Mart- D* ( used to be E*, switched a couple of years ago)
Costco-E*
Sam's Club-E* ( switching to D* when contract ends with E*, already new contract signed when Wal-Mart switched to D*)
Radio Shack-E* ( used to be D*, switched a couple of years ago)
Sears-well, we all know.
That's it, I think for national chains I can think of, then there are the little chains that are not in all states-ABC Warehouse, Frys,
the Wiz ( just kidding).
mwgiii said:
WOW if that is true... I missed it... Isn't that something? CVC will have writte off access for years to come..
More Details from Newsday
Cablevision declined to comment on whether Charles and Thomas Dolan would leave Cablevision if the deal goes through, which would seem mandatory given that Voom would pose potential conflicts of interest.
Charles and Thomas Dolan had planned to leave Cablevision to run Voom under a plan for Cablevision to spin it off as part of a separate company last year.
But the Cablevision board, steered by James Dolan and investment guru Steve Rattner, scotched that plan, after the Securities and Exchange Commission repeatedly refused to approve the spinoff plan. The board insisted that Voom instead be sold or shut despite opposition by Charles Dolan, who controls the company's voting shares. Investors have been sharply critical of Voom as a drain on Cablevision funds.
Under the letter of intent, Cablevision would still pay severance costs but would avoid other shutdown expenses.
The letter of intent was negotiated by a special committee of the board that a source who was informed of some details of the deal said consisted of independent members Vincent Tese, Thomas Reifenheiser and Vice Admiral John Ryan, as well as Victor Oristano.
Cablevision declined to comment on whether Charles and Thomas Dolan would leave Cablevision if the deal goes through, which would seem mandatory given that Voom would pose potential conflicts of interest.
Charles and Thomas Dolan had planned to leave Cablevision to run Voom under a plan for Cablevision to spin it off as part of a separate company last year.
But the Cablevision board, steered by James Dolan and investment guru Steve Rattner, scotched that plan, after the Securities and Exchange Commission repeatedly refused to approve the spinoff plan. The board insisted that Voom instead be sold or shut despite opposition by Charles Dolan, who controls the company's voting shares. Investors have been sharply critical of Voom as a drain on Cablevision funds.
Under the letter of intent, Cablevision would still pay severance costs but would avoid other shutdown expenses.
The letter of intent was negotiated by a special committee of the board that a source who was informed of some details of the deal said consisted of independent members Vincent Tese, Thomas Reifenheiser and Vice Admiral John Ryan, as well as Victor Oristano.
NYTimes (subscripition required)
The financial terms of the acquisition were not disclosed, but it appeared to remove any liabilities Cablevision might have faced in relation to Voom.
The move also signaled that Charles Dolan - said to be furious that the board had not backed him and that his son James had led the board against him - was still focused on the business.
Mr. Dolan was a creator of Home Box Office and associates say he has not given up on the notion that the high-definition satellite business can be another bonanza.
The financial terms of the acquisition were not disclosed, but it appeared to remove any liabilities Cablevision might have faced in relation to Voom.
The move also signaled that Charles Dolan - said to be furious that the board had not backed him and that his son James had led the board against him - was still focused on the business.
Mr. Dolan was a creator of Home Box Office and associates say he has not given up on the notion that the high-definition satellite business can be another bonanza.
So you're saying next time one of these guys switches (seems to be common), maybe they'll go with Voom? Great news! When are the contracts up?bruce said:
Forbes Article about Dolan Purchase
Hope this isn't a repost ....
http://www.forbes.com/feeds/ap/2005/02/10/ap1820437.html
Hope this isn't a repost ....
http://www.forbes.com/feeds/ap/2005/02/10/ap1820437.html
Thanks God!! I can now finally get off this damn emotional roller coaster... 
Allot of people are eating crow today... :neener
Allot of people are eating crow today... :neenerSimilar threads
