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Cablevision, Chuck Dolan Reach Temporary Pact to Keep Voom Going

Mar 8, 2005  •  Post A Comment

Cablevision Systems’ board of directors Tuesday reached an interim agreement with Chairman Charles Dolan to keep the company’s fledgling satellite business going while the company and Mr. Dolan work toward finalizing a separation of the satellite operation from the cable operator.

The agreement, reached during a closely watched board meeting Tuesday, is the latest chapter in an ongoing saga that has pitted Charles Dolan against his son, Cablevision CEO James Dolan, over the fate of Voom, the company’s struggling satellite business. Charles Dolan has advocated keeping Voom alive, while James Dolan has pushed to scrap the venture, which has been criticized by investors and analysts as a bottomless money pit.

The back-and-forth reached a crescendo last week after Charles Dolan ousted three board members who had opposed funding Voom.

Cablevision said the latest agreement allows Voom to continue while Charles Dolan, and his other son, Thomas Dolan, seek to arrange a transaction that would avoid a shutdown of the satellite service. Charles Dolan also agreed to fund any costs incurred by the satellite operation above expenses that would have been incurred had Cablevision shut down the service.

The agreement terminates March 31.