Voom for Sale, Will Dish Buy?
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E* assimulates Voom?
The "absolutely no HD news" coming from E* the last several months makes me think that a deal with/for VOOM is being considered. The stunning statement that E* does not know what it's going to do with the $300,000,000 AMC16 at 85 is absolutely incredible, unless it depends on how the negotiations with Cablevision proceed. With the combined satellite capacity of the 2 and with both planning to switch to MPEG-4 encoding for HD next year, the combination could put HD locals and HD sport network feeds into 50 or more DMA's and carry all of the compelling and partially compelling HD channels. This would provide compelling HD content that would cause a large number of customers to commit to the HD service. Most of the people that I know with one or more HDTV's do not presently subscribe to any HD service because the HD offerings are not compelling or in the case of VOOM, they do not carry many of the "must have" SD channels.
E* should not face regulatory problems in acquiring VOOM since they are #2, but the #1 D* would probably face a lot of regulatory problems and issues in acquiring VOOM. If E* does not acquire VOOM, I will be very surprised if anyone else steps forward.
The "absolutely no HD news" coming from E* the last several months makes me think that a deal with/for VOOM is being considered. The stunning statement that E* does not know what it's going to do with the $300,000,000 AMC16 at 85 is absolutely incredible, unless it depends on how the negotiations with Cablevision proceed. With the combined satellite capacity of the 2 and with both planning to switch to MPEG-4 encoding for HD next year, the combination could put HD locals and HD sport network feeds into 50 or more DMA's and carry all of the compelling and partially compelling HD channels. This would provide compelling HD content that would cause a large number of customers to commit to the HD service. Most of the people that I know with one or more HDTV's do not presently subscribe to any HD service because the HD offerings are not compelling or in the case of VOOM, they do not carry many of the "must have" SD channels.
E* should not face regulatory problems in acquiring VOOM since they are #2, but the #1 D* would probably face a lot of regulatory problems and issues in acquiring VOOM. If E* does not acquire VOOM, I will be very surprised if anyone else steps forward.
I concur. There are really only 2 players out there and quite frankly only one - E*. Now, of course, Rupert could make it difficult on old Charlie and drive the price up but regulatory wise, E* would have a better time getting Voom than D* since they are just "Number 2". However Charlie will probably make an offer and if D* jumps in there to drive the price up, I can see Charlie saying "Fine, go for it" and then D* and Voom would spend a year jumping thru the regulatory hoop and better and zero chance being denied. Unless Uncle Bill wants to dabble in satellite TV, Charlie is the only option. IMHO it would be very bad if Bill got involved because after a year or so Big Bill would look at the books and just shut her down (just like D* did to terrestrial DSL - still pissed about that!) Charlie - "Git er done!"
Forget D* like I said earlier.
I don't see a real "compelling" reason for Microsoft, so how about Mark Cuban buying Voom?
The man's got billions and name one other single person who's done more to promote HD television.
I don't see a real "compelling" reason for Microsoft, so how about Mark Cuban buying Voom?
The man's got billions and name one other single person who's done more to promote HD television.
Cablevision Won't Spin Off Voom
'Strategic Alternatives'
Will Be Pursued Regarding
Satellite-Television Unit
By PETER GRANT
Staff Reporter of THE WALL STREET JOURNAL
December 22, 2004
Cablevision Systems Corp., the country's sixth-largest cable operator, said it has shelved its plans to spin off its fledgling satellite-television operation in what Wall Street is viewing as a step towards selling or shutting down the widely criticized business.
Investors cheered the announcement, which was contained in a filing with the Securities and Exchange Commission, sending Cablevision shares soaring over 13%. Analysts and investors have been highly skeptical that the satellite business, named Voom, would be able to gain much traction against other cable operators and DirecTV Group Inc. and EchoStar Communications Corp., the nation's two largest satellite operators.
To deflect such criticism, Cablevision announced last year that it would spin off the business along with three of its networks, AMC, Independent Film Channel and WE: Women's Entertainment. But in its one-sentence filing yesterday, Cablevision said that its board "has decided to suspend pursuing the spin-off" and would instead "pursue strategic alternatives."
Analysts said that wording indicates the company plans to sell or pull the plug on Voom, which began service last year and generated $75.3 million in losses in the third quarter.
Voom has tried to distinguish itself by offering more high-definition channels than cable companies and other satellite operators. But its appeal has been limited by high installation costs, technical problems and the steady addition by competitors of more high-definition offerings. In the third quarter, Cablevision reported that Voom had 26,000 subscribers, compared with millions for DirecTV and EchoStar.
If Cablevision decides to sell the unit, analysts believe a likely buyer would be EchoStar, the second-largest satellite operator that operates Dish Network and needs additional capacity to offer more high-definition channels.
Nevertheless, analysts believe that Charlie Ergen, EchoStar's chief executive, would have an advantage in negotiations with Cablevision since the cable operator would likely have few other buyers for Voom's satellite, launched in 2003. Thomas Eagan, an analyst with Oppenheimer & Co. estimates that Mr. Ergen might pay as little as $125 million, about half what it would cost to build and launch a new satellite.
Both EchoStar and Cablevision declined to comment on any discussions.
Charles Dolan, Cablevision's chairman and one of the pioneers of the cable industry, has long championed satellite as a highly efficient method for distributing television, and a way for Cablevision to sell its programming to households outside its cable-franchise areas without having to give a cut to local cable companies or other distributors.
Given Mr. Dolan's strong belief in satellite, some investors think there's a chance Cablevision might consider other alternatives such as bringing in a partner, or running Voom as part of Cablevision or resurrecting the spin-off plan.
"I'm not so convinced Chuck [Dolan] doesn't take another shot at continuing on with his vision," says Mario Gabelli, chief executive of Gabelli Asset Management, which manages funds with that hold more than 22 million shares of Cablevision, about a 10.3% stake.
'Strategic Alternatives'
Will Be Pursued Regarding
Satellite-Television Unit
By PETER GRANT
Staff Reporter of THE WALL STREET JOURNAL
December 22, 2004
Cablevision Systems Corp., the country's sixth-largest cable operator, said it has shelved its plans to spin off its fledgling satellite-television operation in what Wall Street is viewing as a step towards selling or shutting down the widely criticized business.
Investors cheered the announcement, which was contained in a filing with the Securities and Exchange Commission, sending Cablevision shares soaring over 13%. Analysts and investors have been highly skeptical that the satellite business, named Voom, would be able to gain much traction against other cable operators and DirecTV Group Inc. and EchoStar Communications Corp., the nation's two largest satellite operators.
To deflect such criticism, Cablevision announced last year that it would spin off the business along with three of its networks, AMC, Independent Film Channel and WE: Women's Entertainment. But in its one-sentence filing yesterday, Cablevision said that its board "has decided to suspend pursuing the spin-off" and would instead "pursue strategic alternatives."
Analysts said that wording indicates the company plans to sell or pull the plug on Voom, which began service last year and generated $75.3 million in losses in the third quarter.
Voom has tried to distinguish itself by offering more high-definition channels than cable companies and other satellite operators. But its appeal has been limited by high installation costs, technical problems and the steady addition by competitors of more high-definition offerings. In the third quarter, Cablevision reported that Voom had 26,000 subscribers, compared with millions for DirecTV and EchoStar.
If Cablevision decides to sell the unit, analysts believe a likely buyer would be EchoStar, the second-largest satellite operator that operates Dish Network and needs additional capacity to offer more high-definition channels.
Nevertheless, analysts believe that Charlie Ergen, EchoStar's chief executive, would have an advantage in negotiations with Cablevision since the cable operator would likely have few other buyers for Voom's satellite, launched in 2003. Thomas Eagan, an analyst with Oppenheimer & Co. estimates that Mr. Ergen might pay as little as $125 million, about half what it would cost to build and launch a new satellite.
Both EchoStar and Cablevision declined to comment on any discussions.
Charles Dolan, Cablevision's chairman and one of the pioneers of the cable industry, has long championed satellite as a highly efficient method for distributing television, and a way for Cablevision to sell its programming to households outside its cable-franchise areas without having to give a cut to local cable companies or other distributors.
Given Mr. Dolan's strong belief in satellite, some investors think there's a chance Cablevision might consider other alternatives such as bringing in a partner, or running Voom as part of Cablevision or resurrecting the spin-off plan.
"I'm not so convinced Chuck [Dolan] doesn't take another shot at continuing on with his vision," says Mario Gabelli, chief executive of Gabelli Asset Management, which manages funds with that hold more than 22 million shares of Cablevision, about a 10.3% stake.
I don't see why any of this matters. Even if Charlie buys Voom's assets he'll still continue to produce buggy hardware, mislead people about future upgrades, and take months and months even for minimal updates to the buggy software. Looks to me like nothing more than another big carrot to dangle in front of people eager for quality hardware and software.
Yesterday, 11:26 PM
SlicerMDM
****"I don't see why any of this matters. Even if Charlie buys Voom's assets he'll still continue to produce buggy hardware, mislead people about future upgrades, and take months and months even for minimal updates to the buggy software. Looks to me like nothing more than another big carrot to dangle in front of people eager for quality hardware and software."****
I understand what you are saying but if E* bought Voom wouldnt they also be buying the rights to the hardware and software and as Scott mentioned earlier Voom subscribers are watching beautiful perfect HD so wouldnt E* subscribers be seeing the same thing as long as we make sure we get the old Voom equipment?
What am i missing here?
SlicerMDM
****"I don't see why any of this matters. Even if Charlie buys Voom's assets he'll still continue to produce buggy hardware, mislead people about future upgrades, and take months and months even for minimal updates to the buggy software. Looks to me like nothing more than another big carrot to dangle in front of people eager for quality hardware and software."****
I understand what you are saying but if E* bought Voom wouldnt they also be buying the rights to the hardware and software and as Scott mentioned earlier Voom subscribers are watching beautiful perfect HD so wouldnt E* subscribers be seeing the same thing as long as we make sure we get the old Voom equipment?
What am i missing here?
What does VOOM have to offer?
other than sat. space....what else does VOOM offer E*.
Don't get me wrong I would love all of the HD I can get but is the content from VOOM worth the price E* will pay for it? from what i hear they only channel that is worth anything is MonstersHD.
HD is growing but I don't think it's that important to Charlie and co. He makes more money with Internationals.
I also don't think it good allocation of space for all market locals in HD on the birds. Most can pick it up with OTA and you don't have to worry about being bit starved.
other than sat. space....what else does VOOM offer E*.
Don't get me wrong I would love all of the HD I can get but is the content from VOOM worth the price E* will pay for it? from what i hear they only channel that is worth anything is MonstersHD.
HD is growing but I don't think it's that important to Charlie and co. He makes more money with Internationals.
I also don't think it good allocation of space for all market locals in HD on the birds. Most can pick it up with OTA and you don't have to worry about being bit starved.
rtt2 said:
Assuming contracts with content providers are finacially acceptable to Charlie the above quote may be a compelling factor in any bid from Echostar.
Newsday Article on echostar buying voom
I don't know if it was posted here before but...
http://www.newsday.com/business/ny-bzcab224093244dec22,0,919569.story?coll=ny-business-headlines
I don't know if it was posted here before but...
http://www.newsday.com/business/ny-bzcab224093244dec22,0,919569.story?coll=ny-business-headlines
I say, be glad that Voom launched its service to people, and thanks for the satellites it built.
It will help out the company that buys them out in the long run,
It will help out the company that buys them out in the long run,
richmert, i agree with you. i'm beginning to think some of these folks are in the tank for voom.
HELLLOO, SCOTT! I'TS A FORUM! WE"RE SUPPOSED TO MAKE WILD SPECULATIONS! THAT"S WHY PEOPLE COME HERE!
HELLLOO, SCOTT! I'TS A FORUM! WE"RE SUPPOSED TO MAKE WILD SPECULATIONS! THAT"S WHY PEOPLE COME HERE!
BFG said:
A prudent action. There are those around here seem to have a hard time telling the difference between fact and idle speculation.
NightRyder
Bryan
I appreciate your interest in the thread but by taking "voom for sale" out of the title it kind of changes the intent of the whole thing. Then by moving it to a side forum instead of the main forum it looks like you dont want that many people to see it. I am sure you are doing the best you can but I hope you can see the effect you may have had on the information. I dont think you are supressing information but you certainly had an effect on the availability of it.
Night
What is idle speculation about voom being for sale? That was the original title of the thread. What is speculative about something that was reported in every major business paper and on every major business web site? Even if cablevision ends up doing something different with voom it is hardly IDLE SPECULATION when it is reported as widlely as it has been and the stock prive goes up so much on that day. I submit that possilbly you are the one that seems to have a problem getting his hands around the facts.
Please I mean no offense to either of you. I am simply trying to get the facts straight.
I appreciate your interest in the thread but by taking "voom for sale" out of the title it kind of changes the intent of the whole thing. Then by moving it to a side forum instead of the main forum it looks like you dont want that many people to see it. I am sure you are doing the best you can but I hope you can see the effect you may have had on the information. I dont think you are supressing information but you certainly had an effect on the availability of it.
Night
What is idle speculation about voom being for sale? That was the original title of the thread. What is speculative about something that was reported in every major business paper and on every major business web site? Even if cablevision ends up doing something different with voom it is hardly IDLE SPECULATION when it is reported as widlely as it has been and the stock prive goes up so much on that day. I submit that possilbly you are the one that seems to have a problem getting his hands around the facts.
Please I mean no offense to either of you. I am simply trying to get the facts straight.
