Cablevision to Shut Down VOOM
Associated Press | April 8, 2005

Posted on 04/08/2005 4:26:14 PM PDT by HAL9000

Cablevision Systems Corp., a New York area cable TV provider, said it would proceed with a shutdown of its money-losing satellite TV venture called Voom.

In a filing with the Securities and Exchange Commission released early Friday, Cablevision said the service would no longer be available to customers as of April 30.

The move represented a defeat for Cablevision's chairman and founder Charles Dolan, who had championed the service. His son James, Cablevision's CEO, had sided with board members who opposed it, leading to a bitter family feud.

Investors, who had long been skeptical about Voom's prospects, applauded the company's belated move to exit the satellite business. Cablevision's shares rose 39 cents to close at $28.23 in Friday trading on the New York Stock Exchange.

Cablevision had decided earlier to shut Voom down but gave Charles Dolan until March 31 to arrange financing to buy Voom's assets privately. With that deadline passed, Cablevision's board decided on Thursday to proceed with the shutdown.

Even though Voom will be closed, the company also said in its regulatory filing that it would consider whether Voom's 21 high-definition TV channels could be marketed to other satellite or cable TV providers.

Cablevision, which is based in Bethpage, on New York's Long Island, has about 3 million cable subscribers in the New York area. It also owns Radio City Music Hall, Madison Square Garden and the New York Knicks and the NHL's rangers.

A company spokesman declined to say whether the shutdown would result in any further charges against the company's earnings. Voom posted a loss of $661.4 million on revenues of $14.9 million for all of 2004, including $354.9 million in write-downs.

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