Interim Deal Keeps VOOM Alive

[Gregg Lengling]

Cablevision said it entered into an agreement with its chairman, Charles F. Dolan, and his son Thomas Dolan in which they agreed to work cooperatively and finalize a separation of Cablevision and its Rainbow DBS operation.

The agreement allows Rainbow DBS to remain in operation and continue to provide VOOM service to subscribers while the Dolans seek to arrange an alternate transaction that would avoid a shutdown of the satellite TV business, the company said. Charles Dolan has agreed to fund any costs incurred by Rainbow DBS above those that would have been incurred under a shutdown scenario, Cablevision added.

The agreement, which was approved by the Cablevision board during a meeting Tuesday, terminates on March 31, Cablevision said.

The move follows last week's threatened shut down of the service by Cablevision, which the company postponed after Charles Dolan placed new members on the cable company's board.