Friday, December 17, 2010

Cablevision May Finally Spin Off Rainbow

The discussion to spin the assets of Rainbow, AMC, IFC and others, has been swirling around Cablevision for quite some time. In fact, they issued a tracking stock in the 90's before pulling Rainbow back into Cablevision. Well the results of the spin off of MSG certainly must have tasted good because the board of directors are moving forward with a Rainbow spin off. "The spin would be constructed as a tax-free pro rata distribution to stockholders and is expected to be completed by mid-year 2011." Good news to investors seeking to unlock more value for Cablevision stock and certainly healthy profits for the family and key employee stockholders.

From the article: "The new Rainbow's assets will include:
• National programming networks: AMC, WE tv, IFC, Sundance Channel and Wedding Central
• IFC Entertainment, an independent film business that consists of multiple brands - including IFC Films, IFC Productions and the IFC Center
• Rainbow Network Communications, a full service network programming origination and distribution company, delivering programming to the cable, satellite and broadcast industries
Cablevision would retain its cable and telecommunications businesses, Newsday, News 12 Networks, MSG Varsity and Clearview Cinemas.
Completion of the spin is subject to several external conditions, including receipt of a private letter ruling from the Internal Revenue Service, and final approval from its board of directors.
Cablevision reiterated that it is not considering the sale of Rainbow or its cable and telecommunications business."

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