Cablevision Board Approves Rainbow Media Spinoff

BETHPAGE: Cablevision Systems Corporation is moving forward with the spinoff of Rainbow Media, its division that operates AMC, IFC, Sundance Channel and WE tv.

The leveraged spinoff is being structured as a tax-free pro rata distribution to Cablevision stockholders and is expected to be complete by mid-year 2011. The move, said Cablevision president and CEO James L. Dolan, "will create two distinct companies—one led predominantly by a premiere cable business and another that houses an attractive portfolio of successful programming assets. We believe this will provide both Cablevision and Rainbow with greater flexibility to freely pursue their own strategic objectives and individual business plans, while allowing investors to more clearly evaluate each of the separate companies’ assets and future potential.”

Both Cablevision and Rainbow would continue to be controlled by the Dolan family. The new Rainbow will encompass the AMC, WE tv, IFC, Sundance Channel and Wedding Central networks; IFC Entertainment, an independent film business; and Rainbow Network Communications, which delivers programming to the cable, satellite and broadcast industries.

Businesses that will remain a part of Cablevision include the cable and telecommunications businesses, Newsday, News 12 Networks, MSG Varsity and Clearview Cinemas.