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David Landsman
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http://www.newsday.com/business/ny-bzvoom4180037mar18,0,6052433,print.story?
coll=ny-business-headlines
Echostar holding on to Voom satellite
BY HARRY BERKOWITZ
STAFF WRITER
March 18, 2005
EchoStar Communications chairman Charlie Ergen said yesterday he has no
intention of giving up the Voom satellite that the company is buying from
Cablevision.
Charles Dolan, chairman of Cablevision Systems Corp. and founder of its
imperiled Voom satellite TV service, has been trying to alter the deal that
his chief executive son James signed in January to sell the satellite for
$200 million as part of a plan to shut down Voom.
"The only thing that would prevent us from acquiring the satellite would be
if we don't get [Federal Communications Commission] approval," Ergen said
during a call with analysts. "Other than that we intend to move forward with
the transaction," he said, adding that he expects to get approval in three
to six months.
Cablevision's board has given Dolan, who opposes the shutdown, until March
31 to come up with a plan to save Voom, which had $660 million in losses
last year, and take it off the company's hands.
But if Voom is forced to switch to a different satellite, it would have to
quickly replace satellite dishes installed at 40,000 customer homes with
bigger, compatible ones, analysts say. That would make Dolan's rescue
attempt an even more challenging and expensive mission.
In a regulatory filing with the Securities and Exchange Commission,
Cablevision said Voom has $285 million in assets, including the satellite,
and $136 million in liabilities.
Ergen did not say whether he would consider leasing space on the Voom
satellite to Dolan, who has put up $10 million of his own cash and
Cablevision stock to help keep Voom alive.
When asked what the message is when a cable pioneer like Dolan is betting
some of his cable stock on satellite TV, Ergen said Dolan "very much has
visions that make sense."
EchoStar, whose service is called Dish Network, gained 430,000 customers in
the fourth quarter, helping push profits to $70 million, compared with $2.7
million a year earlier. Revenue rose 28 percent to $1.93 billion. In
January, EchoStar announced it had topped 11 million subscribers.
EchoStar said on Wednesday that in an internal review it had found
"significant deficiencies" in record-keeping that drew the SEC's attention
but that no adjustment of its financial statements would be required and
procedures were being corrected. Its stock price jumped 2.8 percent
yesterday, or 81 cents per share, to $29.64.
Copyright C 2005, Newsday, Inc.
------------------------
coll=ny-business-headlines
Echostar holding on to Voom satellite
BY HARRY BERKOWITZ
STAFF WRITER
March 18, 2005
EchoStar Communications chairman Charlie Ergen said yesterday he has no
intention of giving up the Voom satellite that the company is buying from
Cablevision.
Charles Dolan, chairman of Cablevision Systems Corp. and founder of its
imperiled Voom satellite TV service, has been trying to alter the deal that
his chief executive son James signed in January to sell the satellite for
$200 million as part of a plan to shut down Voom.
"The only thing that would prevent us from acquiring the satellite would be
if we don't get [Federal Communications Commission] approval," Ergen said
during a call with analysts. "Other than that we intend to move forward with
the transaction," he said, adding that he expects to get approval in three
to six months.
Cablevision's board has given Dolan, who opposes the shutdown, until March
31 to come up with a plan to save Voom, which had $660 million in losses
last year, and take it off the company's hands.
But if Voom is forced to switch to a different satellite, it would have to
quickly replace satellite dishes installed at 40,000 customer homes with
bigger, compatible ones, analysts say. That would make Dolan's rescue
attempt an even more challenging and expensive mission.
In a regulatory filing with the Securities and Exchange Commission,
Cablevision said Voom has $285 million in assets, including the satellite,
and $136 million in liabilities.
Ergen did not say whether he would consider leasing space on the Voom
satellite to Dolan, who has put up $10 million of his own cash and
Cablevision stock to help keep Voom alive.
When asked what the message is when a cable pioneer like Dolan is betting
some of his cable stock on satellite TV, Ergen said Dolan "very much has
visions that make sense."
EchoStar, whose service is called Dish Network, gained 430,000 customers in
the fourth quarter, helping push profits to $70 million, compared with $2.7
million a year earlier. Revenue rose 28 percent to $1.93 billion. In
January, EchoStar announced it had topped 11 million subscribers.
EchoStar said on Wednesday that in an internal review it had found
"significant deficiencies" in record-keeping that drew the SEC's attention
but that no adjustment of its financial statements would be required and
procedures were being corrected. Its stock price jumped 2.8 percent
yesterday, or 81 cents per share, to $29.64.
Copyright C 2005, Newsday, Inc.
------------------------
