Bethpage, N.Y. – Cablevision (NYSE: CVC), the nation’s eighth-largest
cable TV provider, announced on Thursday that it plans to explore a spin-off of
Rainbow Media Holdings, its content division that includes cable networks such
as AMC and Sundance Channel, and film studio IFC Entertainment. The deal would
be structured as a tax-free pro rata distribution to Cablevision’s
stockholders.
"Cablevision is confident of the strength of the Rainbow
business, which houses an attractive portfolio of programming assets, and
believes that the spin-off has the potential to enhance the value of that
business and Cablevision, thereby providing each company with greater
flexibility to pursue strategic objectives," the company said.
Units that
would remain a part of Cablevision after the deal would include Newsday, News
12 Networks, MSG Variety and Clearview Cinemas.
Cablevision is targeting
mid-year 2011 for completion of the proposed spin-off.
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