What's Going On at Cablevision? Company May Be Sold, More Likely Going Private As expected, with the resignation of two top Cablevision executives in two weeks, the rumor mill has started to churn with rumblings that Cablevision could be looking to sell. The usual assortment of sector analysts believe the company could be gearing up for a sale -- where the most likely deal would involve Comcast and Time Warner Cable splitting Cablevision's footprint. A more likely option would be that the Dolan's are preparing to take Cablevision private, given the Dolan's wouldn't get the kind of money they're looking for: ISI Group Inc. analyst Vijay Jayant doesn't see M&A as a likely scenario for Cablevision, telling Light Reading Cable that the gap between what the Dolans would want and what an MSO like TW Cable would be willing to pay is likely far too wide. TW Cable, he said, would likewise be concerned about seeing its stock getting penalized for such a move, as it is now for its pending $3 billion acquisition of Insight Communications Co. Inc. . So that might make it gun-shy to pull the trigger on an even bigger deal. (See Time Warner Cable Splashes Out $3B for Insight .) One of Cablevisions problems with being public, analysts note, is that they were so successful early at getting users signed up for triple plays and higher-end broadband tiers -- that they currently find it difficult to appease investor thirst for quarterly gains as they battle Verizon for marketshare. This would be the company's fourth attempt at going private, with investors angry previous deals undervalued the company. With assets like Madison Square Garden and AMC Networks since shaved off, the move could have a greater chance of success.
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  ctceoPremium
join:2001-04-26
South Bend, IN | Any guesses? Bet is on acquisition by The Weinstein Company, Miramax & Disney  | |
|  Simba7I Void Warranties
join:2003-03-24
Billings, MT
1 edit | Nope.. If we get bought out by Comcrap, I'm freakin' done with ISPs.
I've heard from my friends that ever since CV took over Bresnan here, life has been absolute hell. I could only imagine what would happen if CC took over.
CV did a ton of policy changes at Bresnan. If they would've left them alone, I'm sure the employees and customers would both be happy. Seemed to work before the takeover.
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Bresnan 30M/5M
MyWS[i7-870@4.1G,16G RAM,2x1T HDDs,Win7]
WifeWS[A64@2G,2G RAM,120G HDD,Win7]
Router[2xP3@1G,512M RAM,18G HDD,Allied Telesyn AT2560FX,2xDigital QP DE504,Compaq DP NC3131,2xSun QP GigaSwift, SMC 8432BTA, FreeBSD] | |
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 ·Comcast
| Re: Nope.. said by IowaCowboy:I'd rather have Comcast than Time Warner Cable.
(...)
I would take Comcast over Time Warner Cable any day.
While this holds as a general comparison of cable companies, if I'm a Cablevision subscriber and Comcast becomes my new ISP...I'm jumping ship to Verizon. Comcast provides a reasonable service, but:
- Cablevision offers 100/15 service for $110/month with 5 static IPs
- Comcast's current offering at that price point is 22/5 (or 25/4) with 5 static IPs for $120/month
Plus, Cablevision has been moving to split more nodes & improve their overall network footprint. As long as your node isn't overloaded, access to the internet works fine.
Comcast, on the other hand, overloads their transit and latency suffers during peak hours. Throughput is usually decent, but be prepared for frustration if you try to download something and play a game or make a VoIP call at the same time. | |
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 RARPSL
join:1999-12-08
Suffern, NY | Downside for CV Customers if Merged with Comcast and/or TWC As as CV customer, I do not like the idea that either Comcast or TWC gets their hands on me and switches me to higher priced and less capable tiers that CV offers. While I am not sure exactly what the prices and speed tiers are from Comcast, I know that TWC is overpriced and under provisioned compared to what I have now. In fact the standard CV tier is cheaper and faster than TWC's top tier (unless they have done some upgrades since the last time I saw what they were offering a friend who had to deal with them since he was just north of the CV footprint). | |
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 Romney2012Defeat Obama 2012-Chg we can believe inPremium
join:2002-03-03
USA
kudos:4 |  Problem: huge gap between asset value & market value
Market Cap (intraday): $3.54B
Enterprise Value (Dec 16, 2011): $14.41B
Meaning the company values their assets at approx $14 billion and the stock market values those assets(based on stock price) at $3.5 billion. That huge gap means that the Dolans (in a sale to other companies or the public or a private equity company) would want to get much more for their company than what the market would be willing to pay.
But if the Dolan's want to go private and buy up the outstanding shares themselves, they only need to find someone willing to lend them enough money to buy up outstanding shares and probably only at a reasonable premium over the current market price. What that REASONABLE premium would be is the sticking point and what lenders would want in the way of interest on loans for the Dolans.
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The nine most terrifying words in the English language are, I'm from the government and I'm here to help.
»www.politico.com/rss/2012-election-blog.xml
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| | | | Re: Problem: huge gap between asset value & market value I think the Dolans are finally going to cash out since it is apparent that they can't run a cable company. | |
| | |  KCrimsonPremium
join:2001-02-25
Brooklyn, NY
kudos:1
 ·Verizon FiOS
| Re: Problem: huge gap between asset value & market value said by Rick4769 :I think the Dolans are finally going to cash out since it is apparent that they can't run a cable company.
I totally disagree. The privatization rumor makes lots of sense to me. Both generations of Dolans have managed to milk profits while pushing the company and its technologies to the upper echelon of the industry. They've repeatedly withstood every storm and public thrashing, each time getting richer. They'd like nothing more than to grab their company outright and save it for the next generation of Dolan robber barons. Its not like the family knows much of anything else since the 60's. | |
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Reviews:
·Optimum Online
·Verizon FiOS
| % with interest rates at historic lows, even for corporations... now would be the time to go private. not really saying that's the best long-term move, but what is important: is the company going to fight for the NY Metro market?
This is a critical market for the company. Is Cablevision ready to unleash the floodgates of next generation broadband (100/100 megabits & beyond 'cause docsis 3 can go much higher) for dirt cheap at the high risk of consumers utilizing it for video shunning the cable-tv service?
More important to Cablevison's future.. is Verizon? | |
| | | No As cablevision is right now, i do not think any company but verizon can buy them. Time warner is finishing the insight sale and comcast has the nbc sale.
Cablevision is worth a lot right now. Considering they are successfully fending off verizon fios. | |
| | | | Re: No Verizon wouldnt buy them, are you off your rocker? You think Verizon wants three wire networks to maintain? Even if they did want it, it wouldnt be allowed to happen. | |
| | | | | Re: No What I was alluding to was will there be a "broadand war" that we've long lamented, not VZ acquiring CVC. | |
| | | | | | Re: No I was replying to majortom1029 ??? haha | |
| | | | Rojo
join:2009-04-14
New York, NY | said by tmc8080:What I was alluding to was will there be a "broadand war" that we've long lamented....
Who laments (regrets) broadband wars? The Vz vs. OOL wars are why we customers have such great tiers now. Competition, baby! It's a beautiful thing. | |
| | | | | | | No rate increase and HBO GO soon We just heard that there will be no rate increase for 2012 and HBO GO will be available in a few months. All good news. | |
| | | | | Reviews:
·Optimum Online
·Verizon FiOS
| Re: No said by Rojo:said by tmc8080:What I was alluding to was will there be a "broadand war" that we've long lamented....
Who laments (regrets) broadband wars? The Vz vs. OOL wars are why we customers have such great tiers now. Competition, baby! It's a beautiful thing. Could have been so much better if the rest of the industry wasn't tugging hard in the OTHER direction towards stagnation, usage based billing, overages, and charging MORE for LESS. Localized comeptition doesn't function isolated from the rest of the industry. This is a prime example of why we don't have 50-100 megabits today for the price we've seen 10-20 megabits for the last DECADE! | |
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| NWOhio
join:2011-10-25
Toledo, OH | Would be a great mix for CinciBell. They own a mix of networks; aDSL, HFC and VDSL. And a few small fiber customers. | |
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| | No rate increase for 2012 and HBO GO soon! All good news for CV subscribers today! | |
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