Shareholders of Cablevision have turned thumbs down on the offer from the Dolan family to buy them out for 36.26 per share and take the company private. The buyout bid – the 4th offer from the Dolans – had been accepted by the company’s independent directors, but ran into trouble when several large shareholders decided it was insufficient.
One of those big investors, Mario Gabelli and the funds he controls, has filed a formal demand for an appraisal under Delaware corporate law. That may not matter now, since the 10.6 billion bucks offer has been rejected. The Dolans had previously indicated that they would not increase their bid again.
"While we are disappointed that shareholders did not approve the transaction, there is really nothing negative about today’s outcome. In fact, in many ways, it is a very positive event. We see today’s outcome as a vote of confidence in the prospects of Cablevision, its management team, its 20,000 employees and the industry’s future. Cablevision has become a dynamic, industry leader during the past 35 years and we are ready to continue as a public company. We are extremely proud of all of our outstanding employees who have maintained their focus on the business. We look forward to continuing our work together to serve our customers, to build on Cablevision’s success and to create value for our shareholders," said a family statement released by Charles and James Dolan.
TVBR/RBR observation: What changes now? Nothing. The company is still public and the Dolans are still in charge. Now we wait to see if management can get the stock price up to the 50 bucks or so that the big investors say is the true value of the company.