Satellite sale to EchoStar will cover costs
Grounding the Voom satcasting service is expected to cost Cablevision Systems between $100 million and $130 million, according to docs filed Monday with the Securities and Exchange Commission.
Cablevision said the “significant” expense comes from shutting down Voom’s distribution system, including early termination of contracts, employee severance benefits and other items.
However, cabler said the sale of the main Voom satellite to EchoStar for $200 million will more than cover these costs.
Shutdown expense does not include the $45.8 million recorded on the company’s balance sheet to settle other liabilities relating to Voom.
Addressing an investor’s conference Monday in Gotham, Cablevision chief operating officer Tom Rutledge said the company was in great shape and ahead of the competish in terms of its digital phone footprint.
Comcast, the country’s No. 1 cabler, also made its pitch at the Deutsche Bank confab. Like Rutledge, Comcast treasurer and chief financial officer John Alchin reiterated that phone service could prove the killer app for the cable biz.
Comcast disclosed Monday in its SEC filing that it plans to sell $1.5 billion in debt in two parts.
Cablevision shares were up 6¢ to close at $26.70 in trading Monday; Comcast shares also were up 6¢ to close at $31.83 in trading.