A write up in yesterday’s New York Times suggests that the buyout of Cablevision by its founders, the Dolan family, is not going well and that despite the offer being recommended by the board in what was the fourth bid raised by the family, it may not go ahead.
That offer came in May and was seen as being worth $23 billion after adding the $12.5 billion the company holds in debt, with the Dolan’s holdings and the $10.5 billion in cash which needs to change hands on the deal. A further $5 billion of debt funding also needs to be moved re-cycled, so the family has had to raise $15.5 billion in total debt financing, secured against the company.
But shareholders, led by ClearBridge Advisors, which itself speaks for some 13.6% of the company, are beginning to think that Cablevision is perhaps worth even more. ClearBridge, says the NY Times, has not actually come out and said it won’t accept the deal, but is sitting on the fence and will make up its mind in time for an October 24 vote.
The Dolans already have management control of the company, and they have made it quite clear that if this bid is not accepted by shareholders, they will withdraw their bid, leaving the company public, and still managed by the Dolans. All will be clear in about a week.
Cablevision has three million cable customers in the New York area and was the first cable operator to put together a viable triple play including VoIP voice services. The company also owns Radio City Music Hall and Madison Square Garden, as well as sports teams the New York Knicks and the New York Rangers.