Analysts: Ploy To Go Private May Put Cablevision In Play

Lots of analysts getting writers’ cramp over the bid by the Dolan family, Cablevision’s majority shareholders, to take the cable operations private and spin off the entertainment assests into a new company. A sampling:
Richard Greenfield, Fulcrum Global Partners: “It almost feels like Chuck Dolan is simply attempting to take CVC private so he can capture 100% of the sale premium to Time Warner or Comcast in 12 months, rather than the upside from his current 24% ownership. We believe it is hard to imagine the independent directors not pushing back on $33.50, given the underlying asset value of CVC.” He suggests Comcast and TimeWarner as possible bidders.

Alan Bezoza, SVP-broadband cable research, FBR: “While we applaud management’s efforts to unlock value, we also believe this is a move to cheaply take control of the cable assets. With most of the premium is coming from a rich valuation on Rainbow, we believe investors willing to wait for the spin-off may be left holding the bag.”

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