Think about it. If Voom has to go dark April1, then Rainbow1 is the ONLY way we can have a signal on April 1
Letter from Inverstors to Chuck: (Voom/Echostar merge?)
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Thing is, with the Board now likely stacked in Chuck's favor, the "satisfactory to us" statement takes on a whole new meaning. It will still come down to a Board vote.
Monday is looking more and more like D Day.
Monday is looking more and more like D Day.
Old news: See this long thread: http://www.satelliteguys.us/showthread.php?t=55387cyberized said:
Wow, it is amazing that an article with today's date is already old. Too many things happening, too fast.
Class "A" shareholders/members may be pissed, but Class "B" shareholders have the majority of voting rights. I said it two moths ago and I will say it again, Dolan Sr. controls the shots and CVC is going to pay through the arse to gain control of the company.madpoet said:
hmm you think E* customers may soon be recieving all of the premium movie channels in HD that Voom has and all voom21 as well?
I have to say, from a business prespective, being Echostar why would I want to lease the satellite I just stole for a fraction of it's value to the competion.
If it was a lease...it probably would have been done alreay. I think Echostar does see the true value of Voom and wants a piece of the action and the negotiations with Echostar are just how much of VOOM LLC they own and how much control will we have.
If it was a lease...it probably would have been done alreay. I think Echostar does see the true value of Voom and wants a piece of the action and the negotiations with Echostar are just how much of VOOM LLC they own and how much control will we have.
Alto101 said:
What this says to me is that Charles Dolan believes that he needs Rainbow1 to continue operating Voom (Voom HD LLC). For some reason he believes it isn't feasible to try to shift everything to Rainbow2, or rely entirely to Rainbow2.
Therefore he either needs to negotiate with Echostar to either lease Rainbow1 for some period of time, or to buy Rainbow1 from CVC.
Don't forget there is a Definitive Agreement in place between CVC and Echostar for the sale of Rainbow1. This means that there is very likely a substantial penalty of CVC terminates the agreement, and CVC is not willing to absorb that cost.
This makes it sound like a deal with Echostar is the lynchpin. If this doesn't happen, then the sale of Voom to Voom HD LLC won't go through and Voom will be shut down.
Lots of good info in this memo!
kex63 said:
It remains to be seen just how much value E* can extract from that satellite. It's orbit location is not complimentary to their mainstream customer base. It could potentially replace their aging satellite at the same slot, but for their 110/119 customers to use it they need a second dish.
There is also the fact that the SEC was reluctant to license E* any additional transponders in that slot in a previous review. If we understood exactly what their issues were, we could understand the likelihood of this CVC/E* deal being approved. It's not a certainty yet.
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Just some guesses on my part as far as E* goes, but it could be:
1.Money, it is being reported that Mr.Dolan would need at least 1-2 billion dollars ( don't forget about those 3 birds on order, and if he opts out of that deal, then that shows investors that Voom does not have much of a future ) to keep Voom going over the next few years, but looking at Charlie for a handout / loan/ help is not the right way, Charlie seems ( and looks) to be the kind of guy that still gets his hair cut at Fantastic Sams.
2. Offer the Voom service as a add-on service for E*, this has been talked about before, but they would have to figure out the money parts since they both offer Premium Movie packages, and if E* wants to use the Bird for HD locals, that might not work out, but who knows what E* has planned, I don't even think E* does.
1.Money, it is being reported that Mr.Dolan would need at least 1-2 billion dollars ( don't forget about those 3 birds on order, and if he opts out of that deal, then that shows investors that Voom does not have much of a future ) to keep Voom going over the next few years, but looking at Charlie for a handout / loan/ help is not the right way, Charlie seems ( and looks) to be the kind of guy that still gets his hair cut at Fantastic Sams.
2. Offer the Voom service as a add-on service for E*, this has been talked about before, but they would have to figure out the money parts since they both offer Premium Movie packages, and if E* wants to use the Bird for HD locals, that might not work out, but who knows what E* has planned, I don't even think E* does.
kex63 said:
I doubt E* will invest actual $$$ in Voom, but they may negotiate for a share of the business, in addition to some payment, for Voom LLC to lease Rainbow1.
E* didn't sound like they had concrete plans/timeline for use of Rainbow1, so maybe they will be willing to lease it for a year or two.
jame_g said:
You bet its not feasable, not in a month. But I think thats why they pursued E* to buy the sat and lease it back for a period of time at least until the transition to AMC6.
bruce said:
Maybe, but this sounds like sure way to sink Voom as a stand-alone DBS which appears to be Charles Dolan's goal. Not sure if he'd consider going that route or not. To me, it doesn't sound like a good plan for long-term survival.
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jame_g said:
Does anyone remember this story:
Cablevision Systems Corp. chairman Charles Dolan's agreement to acquire the remaining Voom satellite television service assets may be less about creating a distribution system to take on DirecTV Group Inc. and EchoStar Communications Corp. than about maintaining Voom's 21 high-definition television channels until carriage agreements with other providers can be arranged.
While industry chatter continues to center on whether Dolan might sell Cablevision to pursue his satellite visions, his ambitions were severely diluted when Cablevision's board, led by CEO James Dolan, went against its founder's wishes and sold Voom's main satellite and other assets to EchoStar for $200 million on Jan. 20. Cablevision's board also voted to shutter the rest of Voom but reached a deal late Thursday to sell the remaining assets to the senior Dolan instead.
The agreement transfers to Voom HD LLC — a new entity run by Chuck Dolan and his son, Tom — Cablevision's interest in the 21 HD channels, Ka-Band, Ku-Band and multichannel video distribution and data service licenses, the SES Americom lease on the Rainbow 2 satellite, Voom's 26,000 subscribers and other assets.
"The transaction will allow [us] to avoid various shutdown costs and other liabilities of the Voom service which [we] would have incurred had [we] proceeded with [our] original plan to shut down the service," Cablevision said in a statement.
Voom HD has until Feb. 28 to finalize the deal. The company said in a statement that it is "in the process of securing financing to support the ongoing operations of the business and anticipates having that financing in place by the close of the transaction."
Clearly, a deal to sell Cablevision won't happen in the next two weeks. And though Dolan can put the family trust up as collateral for a loan, it is unlikely he can arrange a credit facility large enough to establish Voom as a viable third competitor to EchoStar and DirecTV, which spent $4 billion and $5 billion, respectively, before reaching cash flow breakeven. Besides, "if Dolan wanted to do that, he would have bought the satellite that Cablevision sold to EchoStar," said a cable and satellite industry source.
"Dolan's not trying to recreate DirecTV," said Navigator Capital Partners' Paul Hammer. "Voom is now more of a programming venture whose value will be determined by its channels."
Among the 21 high-definition channels Voom operates are the sports-focused "World Sports," animal-centric "Animania," Western-themed "Gunslingers," "Rave" music channel, and the "Divine" gay and lesbian network. This stable of channels is now the exclusive province of Voom, if only because no other cable or satellite provider has shown interest in distributing them, according to the source. That may change, however, as the demand for HD television increases.
"He's ensured continued distribution of the channels by leasing space on the Rainbow 2 satellite," Hammer said of Thursday's deal.
If nothing else, that will allow Dolan time to operate the networks until the adoption of high-definition television reaches critical mass. Dolan appears to be betting that once that happens, distributors will be clamoring for as much HD content as they can get, which would, in turn, allow him to collect fees for Voom's programming.
When looked at through a programming rather than a distribution prism, Dolan's Voom moves don't seem so outlandish.
In fact, he may even be onto something
http://www.thedeal.com/NASApp/cs/Co...hpa&c=TDDArticle&cid=1107993031567&p=M4YD5AR1
Just one piece of the puzzle...
Does my crackpot theory here http://www.satelliteguys.us/showthread.php?p=378427#post378427 look a little less daffy now?
Admittedly, today's news is not an exact replica of what I theorized...but I think you've got to admit that there are itsy-bitsy little pieces still coming together. Vicki
Does my crackpot theory here http://www.satelliteguys.us/showthread.php?p=378427#post378427 look a little less daffy now?
Admittedly, today's news is not an exact replica of what I theorized...but I think you've got to admit that there are itsy-bitsy little pieces still coming together.
Vicki
Comeon people, wake up. Dolan does NOT have 21 HDnets. As far as worldsport goes he NO compelling content on that except for euro soccer fans.
Perhaps Dolan wants to make a deal with Echostar that Echostar would provide LIL HD service using R-1 spots to VOOM in exchange VOOM could provide a VOOM tier of HD programming for Echostar.
It is really hard to believe Dolan would have have had intimate knowledge of the Echostar satellite sale agreement terms and conditions, and if he wanted the satellite he could have come up with a better offer.
Sounds to me like some type programming arrangement more than a satellite lease back.
It is really hard to believe Dolan would have have had intimate knowledge of the Echostar satellite sale agreement terms and conditions, and if he wanted the satellite he could have come up with a better offer.
Sounds to me like some type programming arrangement more than a satellite lease back.
Bruce, if his goal is really the distribution of the Voom21 channels then that tactic may work. It just seems like speculation (like what else isn't right now)based on the majority of what I've seen. But it certainly seems like a good back up plan if nothing else. And there has been a lot of speculation about distributing a smaller package of HD channels in order to beef up revenue while keeping Voom itself running. All of this just adds up to information and speculation overload the last couple days!
Quote:
...with EchoStar’s agreement, Rainbow-1 could be brought together with the VOOM business...
Mike, actually to me this phrase sounds exactly like a satellite lease back or transferring the sale to Voom LLC. It doen't have the sound of a programming arrangement to me. But hey, there's a lot open to interpretation right now.
...with EchoStar’s agreement, Rainbow-1 could be brought together with the VOOM business...
Mike, actually to me this phrase sounds exactly like a satellite lease back or transferring the sale to Voom LLC. It doen't have the sound of a programming arrangement to me. But hey, there's a lot open to interpretation right now.
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Vicki said:Does my crackpot theory here http://www.satelliteguys.us/showthread.php?p=378427#post378427 look a little less daffy now?
Admittedly, today's news is not an exact replica of what I theorized...but I think you've got to admit that there are itsy-bitsy little pieces still coming together.
Vicki said:
No, it is still pretty daffy.
E* is worth a whole lot more then Cablevision, just look at the difference between the two men. ( from Forbes)
Rank-310 Name-Charles Dolan Age-77 Worth ($bil)-1.8 Residence-United States , NY , Oyster Bay
Rank-34 Name- Charles Ergen Age-51 Worth ($bil)-9.1 Residence- United States , CO , Denver
Back to the letter, the news of it made reuters:
NEW YORK (Reuters) - Cablevision Systems Corp.'s future could be decided in the next four days, depending on how its chairman plans to meet a deadline to acquire the company's money-draining Voom satellite television assets.
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Chairman Charles Dolan, the controlling shareholder of Cablevision, faces a March 7 deadline set by the company on Thursday to purchase Voom assets not already sold to EchoStar Communications Corp. .
On Thursday, Cablevision disclosed an informal regulatory probe by the U.S. Securities and Exchange Commission into trading activity in its stock during a time when Cablevision had sought to unwind Voom.
Dolan's desire to finance Voom as an ongoing venture could result in his selling part or all of his stake in Cablevision, or even the sale of the company in part or whole within the next two years, analysts said.
Dolan is also "intending to talk to" EchoStar in a possible deal to combine the remaining assets of Voom, including 21 high definition programming channels and 26,000 subscribers, with the satellite that EchoStar agreed to purchase in January.
The disclosure was made in a warning letter written by board member Victor Orison on behalf of Cablevision's independent committee of directors and Class A directors to Charles warning against delaying Cablevision's exit from the satellite business that was filed with the SEC on Thursday.
EchoStar declined to comment.
http://biz.yahoo.com/rb/050303/media_cablevision_sec_6.html
Has everyone forgotten that the two Chucks are good friends as well as competitors. Plus just look at the makeup of the new board members. I am particularly refereing to John Malone. He is a titan of his own in the cable industry and is well connected in Washington with all the powers in Congress and at the FCC. He is actually worth more than Chuck and knows his way around. Since he agreed to sit on the board, he will not be silent and he is an empire builder on his own.
What a force James has unleashed by his actions. Also recent news report over at AVS showed that all the networks believe the HD is really the future have stepping up HD programming and plans. Other cable networks as well. Note that Malone is involved with founding STARZ as well as very involved with the Discovery Channels. This whole process is amazing. Now you may know why the STARZ HD channel has been in the clear for nearly a month.
Interesting times we live in. This story really takes the feud public in a new way. It seems that all the news breaks in the evening. Expect a salvo back for Chuck, family and friends is my guess and only my guess.
What a force James has unleashed by his actions. Also recent news report over at AVS showed that all the networks believe the HD is really the future have stepping up HD programming and plans. Other cable networks as well. Note that Malone is involved with founding STARZ as well as very involved with the Discovery Channels. This whole process is amazing. Now you may know why the STARZ HD channel has been in the clear for nearly a month.
Interesting times we live in. This story really takes the feud public in a new way. It seems that all the news breaks in the evening. Expect a salvo back for Chuck, family and friends is my guess and only my guess.
