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Dolan Files FCC Petition Blocking Satellite Sale |
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NEW YORK, March 31, 2005/Satnews Daily/ — Cablevision Systems Corp. founder Charles Dolan has asked the Federal Communications Commission (FCC) to block the company's $200 million sale of a broadcast satellite to EchoStar Communications.
According to a Wall Street Journal report on Wednesday, Dolan, in an effort to keep his Voom satellite service operating, has told the FCC that he is in the process of making a $400 million personal commitment to the business.
The report also said Cablevision is in discussions with a group of private equity firms led by Kohlberg Kravis Roberts & Co. about possibly joining their bid for Adelphia Communications Corp. (ADELQ), which is in the final stages of being auctioned.
Industry analysts believe the joint bid with the private-equity firms might be tied in to Dolan's need to raise cash for Voom. The New York Times reported on Tuesday Cablevision's discussions with the firms.
In his petition, Dolan challenged the decision made by Cablevision earlier this year to sell Voom's only operating satellite to EchoStar Communications Corp. (DISH) for $200 million.
Earlier this month, Charles F. Dolan, and Thomas C. Dolan negotiated a deal with Cablevision to keep Voom operating while the Dolans find ways to avoid the satellite service from closing down.
Last March 8, Cablevision and the two Dolans agreed to work together to finalize the separation from Cablevision of its Rainbow DBS operations. Rainbow DBS is the satellite service unit of Cablevision that runs the Voom high-definition pay-TV service.
Under the agreement, Rainbow DBS will remain in operation and will continue providing its Voom service to subscribers while Charles and Thomas Dolan seek to arrange an alternate transaction that would avoid its closure.
The agreement was approved by a reorganized board of directors more favorable to Chales Dolan. But the agreement, which was also approved by a special committee of independent directors, terminates on March 31, 2005.
Recent Stories: Voom Service Gets Reprieve as Cablevision Enters into Interim Deal With Dolan Cablevision to Shut Down Voom Service; Sale Deal Dead |
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