Voom Shutdown Could Cost Cablevision up to $130M

Jun 6, 2005  •  Post A Comment

Cablevision Systems said Monday the costs associated with the shutdown of failed satellite service Voom could be as high as $130 million. But the company said the impact would not be significant to the bottom line because the sale of Voom’s lone satellite would likely cover the expenses.

In a filing submitted Monday to the Securities and Exchange Commission, Cablevision said it expects contract terminations, employee severance and other costs to total between $100 million and $130 million, but warned the final figure could be significantly more or less.

However, the company said it anticipates that proceeds from its sale of the Rainbow 1 satellite to EchoStar Communications will be $200 million.

Cablevision tried unsuccessfully to launch a third satellite operator, but shut it down earlier this year after it failed to sign up new customers and led to protracted infighting among Cablevision’s controlling Dolan family.