Why did the sale to Voom HD LLC fall through? Do we take it at face value, or is there more going on behind the scenes. Seems that even Satellite Guys and some of their inside contacts were caught off guard....
Why did the sale to Voom HD LLC Fail?
- Thread starter jame_g
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I really doubt that Charles Dolan had the longterm financing he needed to keep Voom HD afloat. I don't doubt he had some financing to make it last for maybe 6 months to a year at the most, but what beyond that?
It is probably an argument over what obligations VOOM LLC is "buying". CVC probably wants every possible liability to be covered by VOOM LLC. VOOM LLC probably does not want certain liabilities. The two sides do not agree and negotiations are not going smoothly. Other issues probably include the cost of CVC services to VOOM like uplinking, rental of R-1 until everyone has an R-2 dish, CVC staff to help with the transitions, etc.
This is not a simple deal. It is a very complex one that will take a lot of negotiating.
This is not a simple deal. It is a very complex one that will take a lot of negotiating.
I agree with Mike, I'm just wondering what cablevision's intentions was on releasing that press release then?
I wonder if the financing jepordized CVC and its assests. Remember the board has to look out for the best interest of the shareholders. If Chuck had risky finacing of a half assed plan than the board would be obligated to reject it in order to look ot for CVC.
If it was a sale of CVC it would be one thing but something crazy would be another story.
If it was a sale of CVC it would be one thing but something crazy would be another story.
They would care because if Chuck sold all/most of his CVC shares it would give the purchasing company a controlling interest in Cablevision. That would potentially have a large impact to the company, board, executives, and shareholders. Speculation is that most of the financing will be from sale of his CVC stock.
selling his share would give him speculativly most if not all of the money that he needed, but now that the board has regected his offer in good faith, there is nothing stopping dolan from just selling his shares in the morning to TWC OR anyone else and just picking up VOOM on his way out the door.
I don't understand why anyone is voting for dolan didn't have funding (1). It was stated in the press releases that he did have the funding in place. We all know that cvc doesn't want voom, and the stock reflected that. The stock also went up when the letter of intent was made as well stating that the market agreed that cvc should sell what was left of rainbow dbs to voom hd, llc.
Personally none of this makes any sense, but hopefully we'll know more info tomorrow. It seems that cvc has been having a board meeting every tuesday for the past couple of months. Maybe something will come out of that meeting.
Personally none of this makes any sense, but hopefully we'll know more info tomorrow. It seems that cvc has been having a board meeting every tuesday for the past couple of months. Maybe something will come out of that meeting.
I voted for negotiation ploy (on both sides), wish I could have also voted for things going on behind the scenes, because I feel sure they are...but don't have the foggiest notion just how much they encompass.
my gut feeling is that this is all a pr scandal and well looks whats happnen its working if you have not noticed.There getting more and more people involved and word of mouth is the best way to promote something.We are all gonna be mega vooming sooner than you think.If things were so bad why would they switch us to that harmonic thing.Who knows only the sorpranos i mean the dolans know...voomvoom said:
