Cablevision has unveiled the new structure for its soon-to-be spun off programming and satellite company.
New entity, Rainbow Media Enterprises, will be organized around three divisions comprising the Voom DBS service, the Clearview cinema chain (strangely without the Ziegfield Theater) and cable nets AMC, IFC and WE: Women’s Entertainment. The new Rainbow Programming division will also include IFC Prods., the 21 Voom high-definition channels and VOD services Mag Rack, sportskool and World Picks.
An initial public offering for RME is expected later this year.
Chairman Chuck Dolan announced that son Thomas C. Dolan, an exec VP of Cablevision, will be CEO of the new RME, while Josh Sapan will lead Rainbow’s national programming efforts as prexy and CEO of Rainbow Programming. Cablevision vice chair William Bell will serve out that role through the end of the year and will also serve as RME’s chief financial officer until a permanent CFO is appointed.
Mickey Alpert will continue as chief operating officer of Rainbow DBS, while Morten Gotterup will serve as senior VP and general manager of Clearview Cinemas.
Sapan and Tom Dolan are expected to become board members of RME after the spinoff.
Company said Rainbow Media Enterprises will operate as a financially distinct company within Cablevision until the spinoff is complete. Formal SEC documents for the IPO are expected to be filed within the next several weeks.
The equity listing is intended to fund its startup Voom high def satcasting service, which has so far scraped together roughly 1,600 subs.
Long Island-based company’s core cable, telecoms and venues businesses (Madison Square Garden, the Ziegfield movie theater and Radio City Music Hall) will remain under Cablevision, along with its regional sports and news channels.
“We have made significant progress in the implementation of our plan to create two distinct companies for Cablevision shareholders, each with separate funding and management, defined business strategies and clear investment characteristics,” Chuck Dolan said.