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Cablevision chairman goes Voom?
WSJ: Charles Dolan tells FCC he'll invest $400M in satellite service; seeks to block dish sale.
March 30, 2005: 6:41 AM EST

Cablevision Systems Corp. (CVC) Chairman Charles Dolan, in a further sign that he is determined to keep his Voom satellite service operating, has told the Federal Communications Commission that he is in the process of making a $400 million personal commitment to the business, The Wall Street Journal reported Wednesday.

Cablevision also is talking to a group of private equity firms led by Kohlberg Kravis Roberts & Co. about possibly joining their bid for Adelphia Communications Corp. (ADELQ), which is in the final stages of being auctioned.

Analysts are speculating that the joint bid with the private-equity firms might be tied in to Mr. Dolan's need to raise cash for Voom. Cablevision's discussions with the firms were reported Tuesday by the New York Times.

In his filing with the FCC, Mr. Dolan also has taken the highly unusual step of challenging the decision made by Cablevision earlier this year to sell Voom's only operating satellite to EchoStar Communications Corp. (DISH) for $200 million . Mr. Dolan clearly is trying to block the sale so that he can buy the satellite himself.

The filing is the latest twist in his struggle to save Voom, and his willingness to invest $400 million of his own money raises the likelihood that he will put Cablevision on the block to finance the venture, analysts say.

-Wall Street Journal Staff Reporters Peter Grant, Dennis K. Berman and Martin Peers contributed to this article. Dow Jones Newswires 03-30-05 0518ET Copyright (C) 2005 Dow Jones & Company, Inc. All Rights Reserved.  Top of page

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