SEC probes Cablevision

[Threv]

http://money.cnn.com/2005/03/03/news/fortune500/cablevision.reut/index.htm

NEW YORK (Reuters) - Cablevision Systems Corp. Thursday said the Securities and Exchange Commission is conducting an informal inquiry into trading in the company's securities.

The cable operator, in a regulatory filing, said the SEC has requested information related to the company's Dec. 21, 2004, and Jan. 20, 2005, disclosures about the suspension of a planned spin-off of Rainbow Media Enterprises and the agreement to sell part of its satellite assets to EchoStar Communications Corp.

 

[Lobstah]

So who would you rather see on your doorstep? 60 Minutes, or the SEC?

I'm thinkin' 60 Minutes, cuz at least with them, you can do the "No Comment" thing.
Try that with the SEC and you'll be sleeping in Martha's old bed

Lob

 

[Sean Mota]

Source


Cablevision: SEC Probing Voom Deals

38 minutes ago Business - Reuters


NEW YORK (Reuters) - Cablevision Systems Corp. (NYSE:CVC - news) on Thursday said the U.S. Securities and Exchange Commission (news - web sites) is conducting an informal inquiry into its deals to unwind a money-draining satellite television service, Voom.


Cablevision shares fell 4 percent on the news.


The cable operator, in a regulatory filing, said the SEC has requested information related to disclosures the company made on Dec. 21, 2004, and Jan. 20, 2005, about the suspension of a planned spin-off of Rainbow Media Enterprises and the agreement to sell part of its satellite assets to EchoStar Communications Corp. (NasdaqISH - news).


Cablevision also said it now plans to give its chairman, Charles Dolan, who is attempting to buy the remaining Voom assets not sold to EchoStar, until March 7 to present a deal to the board.


The company said it was notified of the inquiry on Monday. The SEC has requested information for the period Nov. 1, 2004, through Jan. 20, 2005, Cablevision said.


Voom HD LLC was launched recently by Dolan, the chairman and company founder, and his son Tom to buy the Cablevision remaining satellite assets that are not being purchased by EchoStar.


On Monday, Cablevision said it would shut down the Voom satellite TV service because it had failed to reach a final agreement with Charles Dolan on a sale.


Shares of Cablevision fell $1.29 to $28.95 in morning trade on the New York Stock Exchange (news - web sites).


In addition to the satellite assets, Rainbow Media's assets include cable channels American Movie Classics and The Independent Film Channel, a variety of on-demand programming services, and motion picture production and distribution businesses.

 

[Lobstah]

Yeah...
Any kind of investigation by SEC is generally NOT "a good thing"... LOL

I just wonder what has them more interested. James, or Charles. As much as I know people here would like it to be somehow linked to James, I'm not sure that Charles is in the clear either?

Lob

 

[rocatman]

Is the term "self dealing" relevant here? I think so in the case of Charles and Tom Dolan since they appear to be the ones to benefit at the expense of Cablevision stockholders.

 

[Walter L.]

I suspect that this investigation is the real reason why the CVC - VOOM HD LLC deal could not be completed by 2/28. They saw it coming.

 

[Lobstah]

Possibly. Also, if the deal is the CAUSE of the inquiry, then James might have been trying to avoid it. No way to know from outside. The only ones that would know for sure are legal counsel to CVC.

Lob

 

[ddlsmith]

Yeah...
Any kind of investigation by SEC is generally NOT "a good thing"... LOL

I just wonder what has them more interested. James, or Charles. As much as I know people here would like it to be somehow linked to James, I'm not sure that Charles is in the clear either?

Lob

Are we as VOOM subscribers in trouble? Are we going to jail too? No!!!!! What about my family?? Is my wife safe? She didn't have anything to do with us getting VOOM. Please leave her out of it. Can she be forced to testify against me? Will I have to share a cell with James. NOOOOO!!!!! Will they have VOOM in the prison break rooms??

 

[rocatman]

I believe Charles Dolan's recent actions related to the new Cablevision board members serves two purposes. The obvious one is to control the vote of the Cablevision board. The second is by bringing in media experts on the board, the value of the Rainbow DBS assets being sold to Voom HD LLC will be less of a question because now you have media experts being a part of this decision.

 

[Bruce]

I suspect that this investigation is the real reason why the CVC - VOOM HD LLC deal could not be completed by 2/28. They saw it coming.

Remember, it started late last year, when the SEC said they would not sign off/approve on the spin-off, that was reason enough to see it coming.

 

[branchbouncer]

Are we as VOOM subscribers in trouble? Are we going to jail too? No!!!!! What about my family?? Is my wife safe? She didn't have anything to do with us getting VOOM. Please leave her out of it. Can she be forced to testify against me? Will I have to share a cell with James. NOOOOO!!!!! Will they have VOOM in the prison break rooms??

And I upgraded my pak to the VaVa Voom right after the news about Voom shutting down--Hope I don't get named as an accomplis

 

[graphiteRT]

Remember, it started late last year, when the SEC said they would not sign off/approve on the spin-off, that was reason enough to see it coming.

Where is this information found? It was my understanding that the CVC board nixed the spinoff, not the other way around.

 

[Bruce]

Where is this information found? It was my understanding that the CVC board nixed the spinoff, not the other way around.

It is all in Sean's Voom Timeline thread.

Here are a few parts of the stories in there:

Investor worries increased. To ease them, Cablevision announced in 2003 that it would spin off Voom together with three of its top cable networks -- AMC, the Independent Film Channel and WE:Women's Entertainment -- worth an estimated $2.5 billion. The plan, largely crafted by James Dolan, was that the networks would throw off enough cash to finance Voom's operating deficits until it became profitable.

Investors applauded the plan because the spinoff would limit Cablevision's exposure to the risky venture. But the spinoff was delayed for months by a Securities and Exchange Commission investigation into alleged accounting irregularities in Cablevision's programming unit.

http://www.satelliteguys.us/showthread.php?t=44022

There are a couple other stories on it also, I'll post them when I find them.

 

[Bruce]

Where is this information found? It was my understanding that the CVC board nixed the spinoff, not the other way around.

Here is one of those stories, there are a couple more, I will post them when I find them:

Last month, the board canceled plans to spin off Voom, which has cost the company hundreds of millions of dollars and attracted few subscribers, as part of a separate risk-oriented company. That vote was 8-6, according to a Wall Street source. That decision followed months of repeated delays as the spinoff plan failed to win Securities and Exchange Commission approval.

http://www.satelliteguys.us/showpost.php?p=284385&postcount=393

 

[graphiteRT]

Remember, it started late last year, when the SEC said they would not sign off/approve on the spin-off, that was reason enough to see it coming.

Afraid you read that one wrong, Bruce. The SEC is investigating, among other things, the canceled spinoff. If the SEC were the ones who called if off, there wouldn't be any questions to be asked, now would there.

Delays because the proposal was not acceptable in it's current form is not the same as a disapproval of the spinoff altogether.

 

[Juan]

Afraid you read that one wrong, Bruce. The SEC is investigating, among other things, the canceled spinoff. If the SEC were the ones who called if off, there wouldn't be any questions to be asked, now would there.


Last month, the board canceled plans to spin off Voom, which has cost the company hundreds of millions of dollars and attracted few subscribers, as part of a separate risk-oriented company. That vote was 8-6, according to a Wall Street source. That decision followed months of repeated delays as the spinoff plan failed to win Securities and Exchange Commission approval. maybe next time you should read the artcle

 

[graphiteRT]

Afraid you read that one wrong, Bruce. The SEC is investigating, among other things, the canceled spinoff. If the SEC were the ones who called if off, there wouldn't be any questions to be asked, now would there.


Last month, the board canceled plans to spin off Voom, which has cost the company hundreds of millions of dollars and attracted few subscribers, as part of a separate risk-oriented company. That vote was 8-6, according to a Wall Street source. That decision followed months of repeated delays as the spinoff plan failed to win Securities and Exchange Commission approval. maybe next time you should read the artcle

Don't get your panties in a wad, Juan. I read the article. It's ambiguous. Comes from the same folks quoting 26k subs when there are more updated figures readily available without a whole lot of research. Loose journalism.

The SEC investigation, OTOH, is pretty clear about which events they are questioning. So if you've got an explanation why the SEC would investigate their own decision, my eyeballs are glued to the monitor.

 

[James Long]

If the SEC were the ones who called if off, there wouldn't be any questions to be asked, now would there.

Sure they would. They would want to make sure that Cablevision was not just getting around the decision they made by creating a crisis where the only options would be 1) approve Voom HD LLC's purchase of the assets or 2) force the shutdown of RainbowDBS and the Voom service.

If the SEC said no to a plan and a company basically said stuff it and went ahead anyways you can practically guarantee an investigation.

Were the deals done properly and announced properly so that ALL stockholders and investors had the appropriate information to make decisions and no attempt at price manipulation has occurred.

JL

 

[graphiteRT]

Getting around the decision??? Are you for real?

They wanted a spinoff. A spinoff that would be funded for a substantial period of time w/Cablevision funds or financing. So to get around SEC objections they just kill the company???? How does that further their original goal of a spinoff? Can you explain in fairly simple English for the slow folk like myself how that is "getting around" the SEC?

That's some logic there, Bud.

Do you work for or have friends in the SEC? Or did you just stay at a Holiday Inn last night?

 

[graphiteRT]

BTW, what decision was made by the SEC? What particulars in the original spinoff plan did they object to? I haven't been able to locate an SEC statement and I have been looking.