Cablevision Details Rainbow Spinoff4/30/2004 9:15 AM Eastern
Cablevision Systems Corp. announced the new structure for the planned spinoff of its direct-broadcast satellite unit, three national movie channels and its movie-theater businesses, slated for later this year.
The new entity will be called Rainbow Media Enterprises Inc., and it will include Rainbow DBS; Rainbow Programming, which will include national movie channels AMC, WE: Women’s Entertainment and The Independent Film Channel, as well as video-on-demand service Mag Rack, sportskool, World Picks and other VOD services; and Rainbow Movies, the corporate name for the theater group that will continue to do business as Clearview Cinemas.
Cablevision said it plans to file the necessary Form 10 documents for the spinoff with the Securities and Exchange Commission “soon.” The spinoff will be completed once the SEC approves the Form 10 and once Cablevision has refinanced the existing Rainbow credit facilities, the company said in a prepared statement.
Businesses remaining with Cablevision following the spinoff will include its cable and
telecommunications businesses; Lightpath; MadisonSquareGarden and its teams; RadioCityMusic Hall; and certain other businesses including fuse, News 12, Metro Channels and Rainbow's interests in regional sports networks around the country.
As previously announced, Cablevision chairman Charles Dolan will serve as chairman of Rainbow Media Enterprises. Current Cablevision CEO James Dolan will become chairman of the Cablevision unit once the spinoff is completed.
Thomas Dolan -- who currently serves as a board member, executive vice president and chief information officer of Cablevision -- will serve as Rainbow Media Enterprises’ CEO.
William J. Bell, who will continue to serve as vice chairman of Cablevision through the end of the year, will also serve, prior to the spinoff, as Rainbow Media Enterprises’ chief financial officer while Rainbow Media Enterprises conducts a search for a permanent CFO.
Josh Sapan will continue to lead Rainbow’s national programming efforts as CEO of Rainbow Programming. Mickey Alpert will continue as chief operating officer of Rainbow DBS, and Morten Gotterup will continue as senior VP and general manager of Clearview Cinemas.
Charles Dolan, Tom Dolan and Josh Sapan are also expected to become members of the Rainbow Media Enterprises board of directors after the spinoff.