Cablevision Inks Deal on VOOM with Dolans

[Gregg Lengling]

Cablevision said it signed a letter of intent in which VOOM HD, a new private company formed by Charles Dolan and Tom Dolan and certain other Cablevision Class B shareholders, will acquire the business, assets and liabilities of Cablevision's Rainbow DBS satellite business not included in Cablevision's earlier agreement with EchoStar announced in January.

In consideration, VOOM HD will assume and indemnify Cablevision against substantially all of the liabilities of the Rainbow DBS satellite business existing at the deal's closing or incurred after the deal, Cablevision said. Cablevision said the transaction will allow it to avoid various shutdown costs and other liabilities of the VOOM service which it would have incurred had it proceeded with its original plan to shut down the service.

Cablevision said it will incur certain severance costs in connection with the transaction.

VOOM HD is in the process of securing financing to support the ongoing operations of the business and anticipates having that financing in place by the close of the transaction, Cablevision said.

[StarvingForHDTV]

VOOM HD is in the process of securing financing to support the ongoing operations of the business and anticipates having that financing in place by the close of the transaction, Cablevision said.

This is hard to imagine.