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Cablevision Board Rejects Dolan Offer
Rumors resurface of Time Warner acquisition
As recently mentioned, the Dolan family ramped up their push to take Cablevision private by increasing the amount they were willing to pay investors per share. Cablevision's board has rejected that offer -- " a rare example of a board standing up to and denying a request by a controlling shareholder," according to the NY Times. While the Dolans had offered $30 a share, analysts think the company could net closer to $40 a share if it were put on the block. One analyst insists there is "a strong likelihood of a Time Warner Cable takeover attempt over the next 12-18 months," though analysts have been floating TWC purchase rumors for what seems like forever.
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FFH5
Premium Member
join:2002-03-03
Tavistock NJ

FFH5

Premium Member

3 cheers for the board on looking out for shareholders

The Dolans tried to use their controlling interest in the company in order to cut a good deal for them, but a bad deal for the other 80% of shareholders. Maybe all the recent interest by NY's Spitzer and the SEC in companies managements feathering their own nests has resulted in corporate boards looking over their shoulders and worrying about doing something not in shareholders best interests.

Robert
Premium Member
join:2001-08-25
Miami, FL

Robert

Premium Member

Re: 3 cheers for the board on looking out for shareholders

said by FFH5:

The Dolans tried to use their controlling interest in the company in order to cut a good deal for them, but a bad deal for the other 80% of shareholders. Maybe all the recent interest by NY's Spitzer and the SEC in companies managements feathering their own nests has resulted in corporate boards looking over their shoulders and worrying about doing something not in shareholders best interests.
Or they are holding out for the TW Purchase so they can bail.

OOLTWC
@rcn.com

OOLTWC

Anon

Re: 3 cheers for the board on looking out for shareholders

The Time Warner takeover is a very likely possibility. Words are meaningless when it comes to corporate management and what they will do. Cablevision rejected this intentionally and look at the DATE: Right before the Time Warner Cable IPO is to be accomplished which is now trading on the pink sheets as a When Issued stock and has been for a little while now but it will be official VERY SOON. They are rejecting this deal and saying they wont sell out to third parties so that Time Warner will have to sweeten the pot. Not because they dont want to sell out.

Due to the Time Warner Cable IPO, RCN is going to have to sell out as well as they will get annihilated now. RCN hired the blackstone group awhile back and now its crunch time for them. Nothing has yet been announced except for a deal with Astound for 45 mil cash for SF which barely allows them to survive in early 2007. RCN has deteriorated to a point of no return for its CATV portion. Its internet side competition is teethering although still somewhat superior to TWC.

So I say its still very likely for Cablevision to be taken over and to see a full integration of the networks and more economy of scale and superior service across the board for customers of both services.

Time Warner with NARAD would be a nice thing for speed deamons. Cablevision has the Narad offering in Long Island, not sure as to which markets its in or whatnot though.

Shamayim
Premium Member
join:2002-09-23

Shamayim

Premium Member

Re: 3 cheers for the board on looking out for shareholders

said by OOLTWC :

. . . and superior service across the board for customers . . .
THAT is highly unlikely.
soothsayer15
join:2002-03-01
Irving, TX

soothsayer15 to FFH5

Member

to FFH5
The board is looking out for itself. They know they can get $40 a share. Why sell for $30?

kamm
join:2001-02-14
Brooklyn, NY

kamm to FFH5

Member

to FFH5
said by FFH5:

The Dolans tried to use their controlling interest in the company in order to cut a good deal for them, but a bad deal for the other 80% of shareholders. Maybe all the recent interest by NY's Spitzer and the SEC in companies managements feathering their own nests has resulted in corporate boards looking over their shoulders and worrying about doing something not in shareholders best interests.
Ehh, it's pure BS, I think - they are simply waiting for the TWCNYC offer, nothing else.

brooklynman4
join:2004-09-07
Brewster, NY

brooklynman4

Member

Re: 3 cheers for the board on looking out for shareholders

I bet they will sell next for tripple now.
Insider101
join:2006-09-19
Brooklyn, NY

1 edit

Insider101

Member

Re: 3 cheers to the Dolans not the board

Before these series of offers the share price of CVC was hovering around $20. Now its at 28 and showing strong signs of going higher in the foreseeable future. My portfolio looks great!
tmc8080
join:2004-04-24
Brooklyn, NY

tmc8080

Member

CASH

so, where does the cash come from for docsis 3.0? as it stands.. cablevision pulled just about enough fiber across their territory for the nodes, now it's up to equipment vendors to deliver the goods to make good on the promise about the new cable modem channel bonding. at which point, verizon can punch back with gpons and 100/100+ symmetric bandwidth.



Good for us, expensive for them!
The way it should be!
Insider101
join:2006-09-19
Brooklyn, NY

Insider101

Member

Re: CASH

Nicely said,
This deal currently shows that there is enough investment capital at Cablevisions disposal to stay alive in the next few years. I am pretty sure Comcast, Timewarner, and Cox communications could as well so as long as the vendors supply enough product for demand, whether it is predocsis 3.0 cert gear, DOCSIS 3.0 cert gear, Narad equipment or FTTH pushes. Cable companies will be able to compete in the foreseeable future, Verizon has no choice other than to build out FTTH but thank them for instigating competition.

CashMatters
@rcn.com

CashMatters to tmc8080

Anon

to tmc8080
Cablevision is losing money and HAS to sell out for long term growth because of the new competitive landscape. Time Warner is likely going to happen regardless of what others say.
Beans5
join:2005-07-16
united state

Beans5

Member

Buyout

If TW does go for CV then what well happen to those sweet speeds that people are getting? Two. CC and Cox might want to get into the bid also. More territory for both compaines to compete against VZ meaning that it probable might end up driving up speeds which would be good for the customer.
patcat88
join:2002-04-05
Jamaica, NY

patcat88

Member

Re: Buyout

said by Beans5:

If TW does go for CV then what well happen to those sweet speeds that people are getting? Two. CC and Cox might want to get into the bid also. More territory for both compaines to compete against VZ meaning that it probable might end up driving up speeds which would be good for the customer.
Gone, TWC will "harmonize" CV to be like the rest of TWC, they lowered the speeds on Adelphia recently. All the advanced tech that CV has/will have will be scraped and bastardized. I belive TWC is one of the cable companies that said "we dont need to upgrade to compete with FIOS because customers are more loyal to us and we are just BETTER", even in NYC they arent competing with FIOS other than loyalty campaigns.

fcisler
Premium Member
join:2004-06-14
Riverhead, NY

fcisler

Premium Member

NO!

No...PLEASE NO!

Despite even my slight aggression towards cablevision - i've yet to see an ISP offer quite what they do.

30/5 for my...what...~$50/mo?

Now if TW moves in...what is it? 8/384? I know they would do it too.....oh please no!
tmc8080
join:2004-04-24
Brooklyn, NY

tmc8080

Member

Re: NO!

Yes, things would probably get worse before they got better if the deal went to Time Warner... thems the breaks.. of course just like losing the "YES" network screwed cablevision... so could cuts in bandwidth by Time Warner if they homoginized the network to the SLOWER speed caps.. they could lose 20% of broadband customers 'off the top'... and through bad press, they'd lose another 20%... the rest really don't care.. as long as youtube, and the garden variety web page loads, they don't care..

Once Verizon locked up 80% marketshare in cablevision land.. Time Warner would be forced to reverse course and release greater speeds and lower prices.. There are more and more people switching to Verizon every day because of the EVENTUAL issues with the cablemodems which are capping, over-utilized upstream by one or more subscribers screwing up the download on the node, billing/customer service issues, poor service, etc. Cablevision has subscriber base, granted.. but they still have those customers to keep or lose to the competition, and it's coming.. can't wait for a whole new set of deployments in cablevision territories, just to force the issue sooner rather than later. Of course free speed upgrades couldn't hurt either..

Don't forget... FTTP boost doesn't slow down during peak node traffic, hehe..