EmailEmail
PrintPrint
Cablevision founder seeks to block company's sale of satellite
Thursday, March 31, 2005

NEW YORK -- In the latest twist in a bitter family feud, the founder and chairman of Cablevision Systems Corp., Charles Dolan, is asking federal regulators to block Cablevision's deal to sell a broadcast satellite to EchoStar Communications Corp.

In the petition, made earlier this week with the Federal Communications Commission, Dolan said the proposed $200 million deal would limit competition among broadcast satellite providers.

Dolan has been battling his company's board and his son James, Cablevision's CEO, over his plans to develop a third satellite TV business that would compete with EchoStar's DISH network and The DirecTV Group Inc.

Cablevision reached the deal to sell the satellite to EchoStar after deciding to shut down the nascent satellite TV business that Dolan had championed, called Voom.

Voom has suffered deep losses since starting up and became a flashpoint of concern among investors, who see it has a drag on an otherwise attractive cable TV company.

Cablevision has agreed to delay a shutdown of Voom to give Dolan enough time to arrange financing to buy what's left of Voom and keep the business alive.

In the filing with the FCC, Dolan said his private entity Voom HD LLC was using $400 million to fund the business. The company is due to decide on the fate of Voom this week.

A company spokeswoman declined to comment on Dolan's filing.

EchoStar spokesman Steve Caulk said the company was perplexed that a member of the Cablevision board would file an objection after the remainder of the board had already voted to sell the Rainbow satellite.

"Nonetheless, we remain committed to complete the deal and using the spectrum to help us compete in a growing pay TV marketplace," Caulk said.

On Tuesday, The New York Times reported that Cablevision might join two major private equity companies in making a bid for the cable TV assets of Adelphia Communications Corp. The company has declined to comment on the report.

At the same time, Cablevision is going head-to-head with New York Mayor Michael Bloomberg over his plans to build a football stadium on the West Side of Manhattan, which would compete with Cablevision's Madison Square Garden a few blocks away.

Cablevision shares rose 80 cents, or 2.9 percent, to close at $28.15 in Wednesday trading on the New York Stock Exchange. Its shares have traded in a 52-week range of $16.13 and $31.64. EchoStar shares rose 39 cents to close at $28.70 on the Nasdaq Stock Market, where its shares have traded in a range of $26.95 and $34.91 over the past 52 weeks.

First published on March 31, 2005 at 12:00 am