cablevision to spin off rainbow DBS

[aboz]

I just saw on Nightly Business Report that Cablevision will sell Rainbow DBS.

[TNGTony]

I think Charlie has his check book ready for this one. :-)

See ya
Tony

[Adam Richey]

Well, do the programming contracts transfer over? If so and Cablevision ACTUALLY had contracts in place for all of those upcoming HD channels, DirecTV is peddling not only up stream, but up a waterfall IMO. LOL

[DCSholtis]

They are NOT selling it what they are doing is spinning it off to their shareholders...here is a link to the story:
http://www.mediaweek.com/mediaweek/headlines/article_display.jsp?vnu_content_id=1899705

[RichW]

Of course, one reason for the spin off could be to be able to sell it later. When the satellite is up and running, the value of the spinoff will jump. However as time goes on, losses will mount and fresh capital must be found. So I think it will be sold within a year after it starts delivering programming.

[t2]

This is very interesting news indeed. I hope D* jumps in and steals rainbow dbs from mr. charlie ergen. This would be the first real salvo signaling that directv is back and ready to compete.

[Mike123abc]

Rainbow would be a much poorer fit for DirecTV than Echostar. It is a good fit for Echostar because they already have 17 of the transponders on 61.5 and all of 148 locked up. 61.5 would just give DirecTV an odd 11 transponders out on a satellite that none of their customers point to.

In addition DirecTV already has more versatile satellites in orbit than Rainbow-1. D* satellites have more spots. Rainbow-1 is more versatile than E*'s satellites, so Charlie would be getting an upgrade.

I doubt that Direct would even consider bidding on the company.

[Jacob S]

I would have to agree with what is being said here. This would benefit Dish much more than DirecTv. Would DirecTv actually bid on this to get the price up or to prevent Dish from getting it?

[rtt2]

Here is a newsday article and it seems Cablevision might want to go full steam ahead on this venture.

Cablevision Looks Skyward
Chairman touts satellite TV's savings compared with cable
http://www.newsday.com/templates/misc/printstory.jsp?slug=ny-biz-cable0603&section=%2Fbusiness

[Jacob S]

Also would all the contracts that Cablevision has for their cable operations go towards this new satellite company as well or at least help?