All Eyes on Cablevision, VOOM Monday

[Gregg Lengling]

This week's roller coaster ride for Cablevision and VOOM will take more twists and turns Monday when the company's board of directors meet concerning the fate of the struggling satellite TV business.

Cablevision Chairman Charles Dolan, who wants to keep VOOM alive and take it over from the cable operator, turned heads this week when he announced new board directors for the company. It's expected that Dolan will address the board about his VOOM wishes on Monday.

Wall Street has taken notice of the behind-the-scenes skirmish. And some suspect the Dolan moves may lead to a Cablevision sale.

"The Alice in Wonderland Dolan family/boardroom struggle at Cablevision must surely rank as one of the most Byzantine in memory. Improbably, it has now taken a turn from the simply strange to the truly bizarre," said Craig Moffett of Bernstein Research. "The decision to replace directors at Cablevision at first blush only muddies the situation further. But we believe the governance battle may be putting the company on an irreversible path toward liquidation, and must in the end be viewed as a positive."

Richard Greenfield of Fulcrum Global Partners said the new board members may be more receptive to Dolan's VOOM acquisition plan. "If this theory proves accurate, we believe the funding Chuck Dolan will need to finance VOOM will result in a sale of Cablevision over the next 12 to 24 months, as a sale to Time Warner or Comcast would provide the most tax-efficient means of raising capital," Greenfield said.

Moffett also eyed the struggle between Chairman Charles Dolan and his son, Cablevision CEO James Dolan. "With relations between Charles Dolan and son James Dolan now appearing irreparable, we believe one possible objective could be the ouster of James as CEO," he said.