Cablevision Scores Deal for Sundance Channel

NEW YORK, May 7: Cablevision
Systems Corporation, whose portfolio of cable networks also includes AMC, IFC
and WE tv, has reached a deal to acquire the Sundance Channel from current
owners NBC Universal, CBS Corporation, Showtime Networks and founder Robert
Redford for $496 million.

The total consideration of
$496 million will be paid through a tax-free exchange of approximately 12.7
million shares of common stock in NBCU parent General Electric currently held
by Rainbow Media, with a cash adjustment. General Electric will receive all of
the GE shares and the CBS and Redford entities will receive cash in exchange
for their interests. Upon completion of the transaction, Cablevision’s Rainbow
Media division will own 100 percent of the Sundance Channel.

The network, which
features a range of films, docs and original content, is available to almost 30
million homes across the U.S. Following the transaction, it will join Rainbow
Media’s current portfolio of entertainment brands, AMC, IFC and WE tv. Announcing
the transaction, James L. Dolan, the president and CEO of Cablevision, said:
“We are always looking for strategic opportunities for our business and
Sundance Channel adds another valuable asset to Rainbow’s award-winning lineup
of programming networks.”

Cablevision’s COO, Tom
Rutledge, who oversees Rainbow Media, added: “Programming that attracts a
dedicated viewing audience has always been Rainbow’s mission and we think that
Sundance Channel is an excellent fit and consistent with that rich heritage. We
also believe that with Rainbow’s resources we will have a tremendous
opportunity to build upon Sundance Channel’s success.”

Sundance Channel was
launched by Redford in 1996, and Cablevision says that the channel will
“benefit from its continuing relationship” with the actor. Redford said in a
statement: “The Sundance Channel team, led by CEO Larry Aidem, has exceeded
every expectation I had for this venture. Innovation and integrity in both
business and creative models have continually resulted in new ways of bringing
dynamic programming to wider audiences. We look forward to working with Rainbow
to further distinguish Sundance Channel and to create even greater value for
this important service.”

Sundance Channel’s
president and CEO, Larry Aidem, added: “Rainbow unquestionably has the
programming and distribution prowess necessary to run cable networks
successfully over the long term. The opportunity to be a wholly owned, core
asset in the Rainbow/Cablevision portfolio ensures a very bright future for Sundance
Channel.”

—By Mansha Daswani