Cablevision to Explore Possible Spin-Offs

Authored by Mark Hefflinger on August 5, 2008 - 10:00am.

Bethpage, N.Y. - Cablevision (NYSE: CVC), the cable TV operator and owner of sports teams, newspapers, entertainment venues and cable networks, announced on Tuesday that its board has authorized management to explore "all actions necessary or desirable" to enhance value for the company's shareholders, including the spin-off of one or more businesses.

The company will also establish a policy with respect to regular quarterly dividends or stock buybacks.

New York-based Cablevision counts over 3 million subscribers in the New York area, and also owns the New York Knicks, New York Rangers, Madison Square Garden, Radio City Music Hall and Rainbow Media Networks, which includes AMC, IFC and Sundance Channel.

The company also recently acquired New York-area newspaper Newsday for $650 million.

Cablevision said it will retain investment banking firms and other advisors to pursue the strategic options.

"We are highly confident of the strength of our underlying businesses and our operating performance," said Cablevision president and CEO James L. Dolan.

"As we indicated last week we have a strong desire to close the value gap between our operating performance and the market value of our shares and, therefore, we will be actively looking at options to accomplish that."