Cablevision Dynasty Makes New Buyout Offer

10 October 2006

BETHPAGE, New York: One-time feuding media dynasty, the Dolans have unveiled new plans to put their Cablevision Systems company back into private hands.

Chairman Charles and ceo son James have offered more than $7.9 billion (€6.27bn; £4.23bn) in cash to buy all outstanding shares.

The proposal comes a year after their previous stock and cash offer, aimed at splitting the company in two, was abandoned when it met with resistance from other directors. [WARC News: 27-Oct-05].

At that time the Dolan duo wanted to retain the lucrative cable operation while spinning off the New York Knicks basketball team, television channels and the Madison Square Garden entertainment venue.

In a letter to the board outlining their latest proposal, Dolans major and minor say: "We continue to feel that succeeding in this fiercely competitive environment requires a long-term, entrepreneurial management perspective that is not constrained by the public markets' constant focus on short-term results."

They add: "We are convinced that private ownership is highly desirable, and we are willing to assume the risks of full ownership."

A special committee of independent Cablevision directors is expected to review the bid, as it did last year. Industry analysts believe it may demand an increased offer from the family.

Data sourced from New York Times; additional content by WARC staff