12.22.2004 12:00 AM
VOOM Goes on the Block
Cablevision is canceling the spin-off of its Rainbow Media Enterprises subsidiary, instead pursuing "strategic alternatives" for the Rainbow DBS business (marketed as the VOOM HDTV satellite service), according to Dec. 20 SEC filings.
Fulcrum analyst Richard Greenfield said that EchoStar could be a potential buyer, because its DISH network needs more satellite capacity and the VOOM satellite could provide needed assets.
VOOM is currently valued at negative $1.5 billion, but even if it was sold for $1 Cablevision's valuation would increase from $ 27.50 to $32.70, according to Greenfield's analysis.
In the past month Rainbow inked a deal with Lockheed Martin for five Ka-band satellites, however it lacked the funds to complete the project.