Steve Mehs
02-11-03, 05:13 AM
Merrill Lynch analyst Jessica Reif Cohen on Monday raised her rating for Cablevision to a "buy," saying the MSO could report positive news for its high-speed cable modem business and may start moving on a sale of its satellite TV assets.
Reif Cohen, who hasn't been a fan of Cablevision's DBS aspirations, said in a research note that a delay in launching the first Cablevision satellite this year could provide the company with additional time to negotiate a sale of its DBS assets, possibly to EchoStar.
Given DirecTV’s effort to expand local TV offerings to more than 100 U.S. markets, EchoStar will need additional capacity to increase its local TV market coverage, Reif Cohen said. "Cablevision’s satellite is the solution and it is configurable with EchoStar’s system even after launch," she said.
She pegged the satellite’s worth at $350 million to $500 million in a private sale.
"It is clear that DBS operators will need additional capacity to handle the requirements of broadcast local signals and high definition television, putting a premium on Cablevision’s orbital slot," Reif Cohen said. "It is also clear that launching a third DBS service relying on a single bird is not feasible."
From SkyReport (http://www.skyreport.com/skyreport/feb2003/021103.shtm#two) (Used with Permission)
Reif Cohen, who hasn't been a fan of Cablevision's DBS aspirations, said in a research note that a delay in launching the first Cablevision satellite this year could provide the company with additional time to negotiate a sale of its DBS assets, possibly to EchoStar.
Given DirecTV’s effort to expand local TV offerings to more than 100 U.S. markets, EchoStar will need additional capacity to increase its local TV market coverage, Reif Cohen said. "Cablevision’s satellite is the solution and it is configurable with EchoStar’s system even after launch," she said.
She pegged the satellite’s worth at $350 million to $500 million in a private sale.
"It is clear that DBS operators will need additional capacity to handle the requirements of broadcast local signals and high definition television, putting a premium on Cablevision’s orbital slot," Reif Cohen said. "It is also clear that launching a third DBS service relying on a single bird is not feasible."
From SkyReport (http://www.skyreport.com/skyreport/feb2003/021103.shtm#two) (Used with Permission)