the real story?

[klen]

Here's how everything could be playing out in my eyes:
As speculated in the headlines, Charles is trying to sell CVC to finance Voom. Jimmy is fighting for his life trying to save CVC- thus the panicked site shutdown, press releases, and internal memos of desparation and doom & gloom.

Jimmy is spinning it the other way, but earlier headlines tell me that the above might be the true story.

still taking installs. news anchors still there. still advertising. I think I even saw some new programming this morning.

Just a thought....

-k

 

[Bruce]

Use logic, it will take months at least for a sale to happen, plus all that SEC and FCC stuff, and if Mr.Dolan was doing that to save Voom, the board can/still turn it down.

 

[Scott Greczkowski]

Here's how everything could be playing out in my eyes:
As speculated in the headlines, Charles is trying to sell CVC to finance Voom. Jimmy is fighting for his life trying to save CVC- thus the panicked site shutdown, press releases, and internal memos of desparation and doom & gloom.

Jimmy is spinning it the other way, but earlier headlines tell me that the above might be the true story.

still taking installs. news anchors still there. still advertising. I think I even saw some new programming this morning.

Just a thought....

-k

Ding Ding Ding, we have a winner.

This is my understanding of what's going on. All is not lost yet.

 

[Bruce]

Ding Ding Ding, we have a winner.

This is my understanding of what's going on. All is not lost yet.

Ok, say he does this in such a short time , goes to his board and says "I just sold my stock to Time-Warner" and then the board goes, we still won't sell you Voom because the agreement expired and we want to keep our jobs.

That is just as likely as everything said here since yesterday.

 

[Lobstah]

I think it's being purchased by terrorists that will then use the phenominal HD capabilities to implement one of the greatest brainwashing schemes in history...
ALL IN HD!!!



Lob

 

[mike123abc]

The real story is probably:

1. CVC board and Dolan Sr are far apart on terms, and unless Dolan Sr comes up with a much better offer, it will be cheaper for CVC to just turn off VOOM.

2. CVC board votes to turn off VOOM. James being the CEO of CVC has no choice but to start implimenting the policy. Turns off web access, sends out layoff notices, etc. This is not petty behavior, he has been directed to turn off VOOM in 30 days by the board of directors. Yes he may have favored this position, but it was not his decision.

3. Dolan Sr is probably still working on the deal. This work continues while VOOM prepares to shut down. IF an agreement is reached and CVC board agrees then VOOM will stay on the air.

This is a very simple process, yet people seem to think that it is a petty battle. If the deal with Dolan Sr never takes place and James did not take the steps to shut down VOOM as directed who do you think will held responsible? I suspect that soon the CSRs will be informed. Perhaps James is holding back a few days to give his dad a bit of wiggle room to negotiate a better agreement. What do you think would happen if yesterday the CSRs were told to start calling everyone and telling them to find a new provider by 3/31/05? It will not be long before these calls have to be made. James is giving his dad a brief amount of time to at least get another offer ready before the final nail is put in the coffin.

 

[dsmit25]

how in the hell did you get so smart?

 

[Walter L.]

Here's how everything could be playing out in my eyes:
As speculated in the headlines, Charles is trying to sell CVC to finance Voom. Jimmy is fighting for his life trying to save CVC- thus the panicked site shutdown, press releases, and internal memos of desparation and doom & gloom.

Jimmy is spinning it the other way, but earlier headlines tell me that the above might be the true story.

still taking installs. news anchors still there. still advertising. I think I even saw some new programming this morning.

Just a thought....

-k

Amen man!!! The interesting part is that there is a flaw in Jimmy's strategy: even if he shuts down Voom, that doesn't prevent Charles from selling CVC and go fishing.

 

[mdonnelly]

Spin Masters

The "creative spin" continues in the VOOM forums. I wonder if the new regime in Baghdad needs a new information minister?

 

[Scott Greczkowski]

Hmm - James Dolan gets the role of Bahgdad Bob?

 

[ripit]

This is something I posted over at AVS the other day FWIW....

I have a friend that is fairly well placed at CV and his take on this whole situation is that Chuck is hell bent on buying Voom and is 100% convinced it will succeed, in spite of all indications to the contrary, while Jim and other board members believe he is absolutely mad. Jim is making it as difficult as possible for the sale to go through in an attempt to save Chuck from himself, for the most part.

My friend said that Jim also believes that if Chuck does acquire Voom, he will do just about anything to make it work - including selling most or all of his stake in CV. This would basically mean selling to TW or CMCST most likely. Aside from obviously putting Jim out of a job, he is also concerned that in a semi-hostile takeover where another company could gain control over the board and force him out, there is a strong possibility that the new owners would sell off the Knicks and Rangers to the highest bidder - which is all Jim really cares about. He has zero involvement with the operations of the core cable and Rainbow Media business. If there is to be a sale, Jim wants it to be on his terms so that he can negotiate the NYR & NYK out of the deal so that he can continue to run them (into the ground).

Keep in mind, this is hearsay and speculation, so take it for what it is worth.

 

[danielle_s]

The real story is probably:

1. CVC board and Dolan Sr are far apart on terms, and unless Dolan Sr comes up with a much better offer, it will be cheaper for CVC to just turn off VOOM.

2. CVC board votes to turn off VOOM. James being the CEO of CVC has no choice but to start implimenting the policy. Turns off web access, sends out layoff notices, etc. This is not petty behavior, he has been directed to turn off VOOM in 30 days by the board of directors. Yes he may have favored this position, but it was not his decision.

3. Dolan Sr is probably still working on the deal. This work continues while VOOM prepares to shut down. IF an agreement is reached and CVC board agrees then VOOM will stay on the air.

This is a very simple process, yet people seem to think that it is a petty battle. If the deal with Dolan Sr never takes place and James did not take the steps to shut down VOOM as directed who do you think will held responsible? I suspect that soon the CSRs will be informed. Perhaps James is holding back a few days to give his dad a bit of wiggle room to negotiate a better agreement. What do you think would happen if yesterday the CSRs were told to start calling everyone and telling them to find a new provider by 3/31/05? It will not be long before these calls have to be made. James is giving his dad a brief amount of time to at least get another offer ready before the final nail is put in the coffin.

And what makes you think that james dolan wants his dad to have voom?
Man, read between the lines. We all know that none of your specs... are even close.

 

[mike123abc]

And what makes you think that james dolan wants his dad to have voom?
Man, read between the lines. We all know that none of your specs... are even close.

Well for one thing James Dolan does not have the final say on this. Even if as reported that it was James that led the battle in the boardroom to stop losing money on VOOM, it was not his decision, it was the board of directors. The board of directors of CVC has the final say, and Dolan Sr is the chairman of this board.

That being said the board of CVC has the obligation to shareholders to find the best way out of this mess. As of now they have voted that shutting down VOOM is the best way out for the shareholders.

Even though Dolan Sr controls more than 50% of the shareholder votes if it came down to a proxy fight, he only has to look at what happened to the Rigases. He cannot be seen as forcing the company to "give" him something. He has to deliver a plan that is better to CVC shareholders than shutting down VOOM.

Everyone sitting around and speculating that James is killing VOOM just to spite his father just has to remember that Dolan Sr can oust James without too much trouble if needed. He would win the proxy fight since he owns more than 50% of the voting shares.

 

[graphiteRT]

Everyone sitting around and speculating that James is killing VOOM just to spite his father just has to remember that Dolan Sr can oust James without too much trouble if needed.

Based on the Board appointments late today, it would appear he's planning to do just that and it won't be with a proxy.

Remember that the votes have been split on the Board over the fate of Voom. If Charles is putting these guys in to tilt the power, the end result is pretty clear. Just a matter of time.

Next Monday should be pretty interesting. Let's hope that Board meeting is early in the day.

 

[nyrebel3]

I don't believe Dolan Sr is loading the board to fire James. Instead, he is looking to change the outcome of a BOD vote to keep Voom under CVC. I believe James is required to follow the directon from the BOD or else he would be personally liable for the consequences. So if the BOD votes to keep Voom then James would be obligated in the same regard. . . Then Dolan, Sr could have his cake and eat it too by keeping Voom alive without selling CVC.

As for any negotiations to sell Voom to Dolan, Sr - everyone should keep in mind that the transaction should be at an "arms length". If the price is too low then the govt (SEC, IRS, etc.) could assume that this was a sweetheart deal and really scrutinize every aspect and financially impact one or both sides. Now valuating a fair market price on the remaining parts of Voom could be very different depending on what assumptions each side uses.

Don't know anything, but food for thought . . .

 

[danielle_s]

I don't believe Dolan Sr is loading the board to fire James. Instead, he is looking to change the outcome of a BOD vote to keep Voom under CVC. I believe James is required to follow the directon from the BOD or else he would be personally liable for the consequences. So if the BOD votes to keep Voom then James would be obligated in the same regard. . . Then Dolan, Sr could have his cake and eat it too by keeping Voom alive without selling CVC.

As for any negotiations to sell Voom to Dolan, Sr - everyone should keep in mind that the transaction should be at an "arms length". If the price is too low then the govt (SEC, IRS, etc.) could assume that this was a sweetheart deal and really scrutinize every aspect and financially impact one or both sides. Now valuating a fair market price on the remaining parts of Voom could be very different depending on what assumptions each side uses.

Don't know anything, but food for thought . . .

Personally I don't think that Dolan wants to sell cablevision however, he's doing this because james and board are refuseing to let him have his baby known as voom. He made the offer they turned it down and that is what has started this war. They should let him have voom.