Cablevision Board OKs Spinoff of Rainbow--Including AMC, Sundance Bloomberg

The spinoff of its Rainbow unit was approved by Cablevision's board, meaning that channels including AMC and Sundance will be spun off to Cablevision shareholders in a "tax-free pro rata distribution," reports Bloomberg News.

The transaction should be completed by midyear 2011, the story notes.

Cablevision said it's not considering a sale of Rainbow or its cable and telecommunications business, with the Rainbow spinoff allowing the cable operator to focus on its telecommunications operation. The article says the latter accounted for 94% of Cablevision's operating income last quarter.

The Rainbow unit also includes IFC.