Scott Greczkowski
08-07-03, 06:56 AM
Street Scrutinizes Cablevision DBS Moves
Reposted with Permission from SkyReport.Com
Cablevision said the pending spin off of its developing satellite TV business is on track, yet Wall Street said it continues to closely watch company moves concerning the Rainbow DBS business.
The financial community is still scrutinizing the DBS business, which got a boost in July when it launched its first satellite. The spin off, said Fulcrum Global Partners analyst Richard Greenfield, "is a critical positive, as investors can quantify the worst-case impact on leverage and no longer need to be concerned with the satellite business after 2003."
He added, "We still believe more positive outcomes are possible - such as selling to a competitor or launching a wholesale HD focused service."
John Hill of SoundView Technology Group said the company's cap on funding to the DBS venture was widely applauded by the Street. However, "There still is uncertainty about the fate of the investment.
"If CVC proceeds with the service, it could disappoint investors who hope Cablevision would sell more assets to further de-leverage," Hill said. "We acknowledge that a sale of the asset - even at a low price - probably would be well-received by investors."
The DBS spin-off is expected to take place in fourth quarter. The company said this week DBS service is expected to commence in October.
Reposted with Permission from SkyReport.Com
Cablevision said the pending spin off of its developing satellite TV business is on track, yet Wall Street said it continues to closely watch company moves concerning the Rainbow DBS business.
The financial community is still scrutinizing the DBS business, which got a boost in July when it launched its first satellite. The spin off, said Fulcrum Global Partners analyst Richard Greenfield, "is a critical positive, as investors can quantify the worst-case impact on leverage and no longer need to be concerned with the satellite business after 2003."
He added, "We still believe more positive outcomes are possible - such as selling to a competitor or launching a wholesale HD focused service."
John Hill of SoundView Technology Group said the company's cap on funding to the DBS venture was widely applauded by the Street. However, "There still is uncertainty about the fate of the investment.
"If CVC proceeds with the service, it could disappoint investors who hope Cablevision would sell more assets to further de-leverage," Hill said. "We acknowledge that a sale of the asset - even at a low price - probably would be well-received by investors."
The DBS spin-off is expected to take place in fourth quarter. The company said this week DBS service is expected to commence in October.