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.
Voom Shutdown Could Cost Cablevision up to $130M
Jun 6, 2005 • Post A Comment