Media industry trend
The deal is another example of a family-run media company going from a public company back to private ownership, as a way to alleviate the pressure from Wall Street to produce short term results.
"The Dolan family founded Cablevision nearly 35 years ago, and we are very proud of the company's track record of delivering quality service and innovative products to our customers," Charles F. Dolan and James F. Dolan said in a joint statement. "We believe the best way to continue this tradition in today's increasingly competitive environment is as a privately held company. This new structure and an entrepreneurial perspective will enable us to keep growing the business with our talented management team and dedicated employees."
In addition to Cablevision Systems Corps., a cable operator that reaches 3.1 million households in the New York metropolitan area, the company's sports and venue properties include Madison Square Garden, Radio City Music Hall, the New York Knicks and the New York Rangers. It also owns Rainbow Media Holdings, which includes cable networks AMC, IFC, WE and video-on-demand networks Sportskool and Lifeskool.
The Dolans will pay $36.26 a share for the company under the deal's terms, an 11% increase from its market close at $32.67 yesterday and a 21% premium to the $30-per-share offer the family made in January.