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Dolans Lose Buyout Bid for Cablevision

Investors nix plan to take company private; offer too low

By Jim O'Neill,  Newser User

Posted Oct 24, 2007 1:22 PM CDT
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(Newser) – Cablevision shareholders today rejected a bid by the Dolans, the company's founding family, to take the Long Island-based cable provider private. The family offered $10.6 billion, or $36.26 a share, below what major investors felt was the firm's value, the AP reports. Analysts valued the company, which also owns the Knicks, Rangers, Madison Square Garden, and Radio City Music Hall, at as much as $50 per share.

The Dolans control about 65% of voting shares, but  the sale required a majority of outside shareholders. The "no" vote was expected after ClearBridge Advisors, the largest outside shareholder, came out against the deal—the Dolans' third effort to take the company private. Cablevision CEO James Dolan put a positive spin on the rejection, calling it a "vote of confidence in the prospects of Cablevision." 

James L. Dolan, chairman of Madison Square Garden and CEO and president of Cablevision Systems Corp. cable company, talks during a news conference in this Nov. 15, 2006 file photo, in New York City. Cablevision Systems Corp., a New York-area cable TV provider, reported higher profits Wednesday, Aug. 8, 2007...
James L. Dolan, chairman of Madison Square Garden and CEO and president of Cablevision Systems Corp. cable company, talks during a news conference in this Nov. 15, 2006 file photo, in New York City. Cablevision...   (Associated Press)
The marquee of New York's Radio City Music Hall, a property of Cablevison Systems Corp., is seen in this May 2, 2007 file photo. The Dolan family's bid to take Cablevision Systems Corp. private next week ran into more trouble Wednesday, Oct. 17, 2007 after the cable TV company's largest...
The marquee of New York's Radio City Music Hall, a property of Cablevison Systems Corp., is seen in this May 2, 2007 file photo. The Dolan family's bid to take Cablevision Systems Corp. private next...   (Associated Press)
James Dolan, Cablevision President and Chief Executive Officer and Madison Square Garden Chairman, attends a New York news conference in this Jan. 11, 2006 file photo.(AP Photo/Kathy Willens, File)
James Dolan, Cablevision President and Chief Executive Officer and Madison Square Garden Chairman, attends a New York news conference in this Jan. 11, 2006 file photo.(AP Photo/Kathy Willens, File)   (Associated Press)
A repairman replaces a light on the Marquee of New York's Radio City Music Hall, a property of Cablevison Systems Corp., Wednesday May 2, 2007. Cablevision Systems Corp., a New York-area cable TV provider that also owns Madison Square Garden, said Wednesday it has agreed to be taken private by...
A repairman replaces a light on the Marquee of New York's Radio City Music Hall, a property of Cablevison Systems Corp., Wednesday May 2, 2007. Cablevision Systems Corp., a New York-area cable TV provider...   (Associated Press)
Cablevision Headquarters in Bethpage, N.Y.,are seen in a file photo from Aug. 8, 2005.(AP Photo/Ed Betz, File)
Cablevision Headquarters in Bethpage, N.Y.,are seen in a file photo from Aug. 8, 2005.(AP Photo/Ed Betz, File)   (Associated Press)
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$22B offer too low
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