Lately it seems like Cablevision just can’t stay out of the news. CableFAX Daily is reporting that the New York-based cable operator is looking into a potential spinoff of Rainbow Media to Cablevision stockholders. The spinoff offers an alternative to selling Rainbow and Cablevision anticipates that it would be completed by the mid-2011.
In an official statement Cablevision said that the proposed spinoff would be “structured as a tax-free pro rata distribution to stockholders.” If the transaction goes through, the newly formed public Rainbow company would include AMC, WE tv, IFC, Sundance Channel, and Wedding Central. Cablevision believes the spinoff would bolster the company’s overall value and allow for more flexibility to “pursue strategic objectives.”
If the spinoff is completed it would not affect Cablevision’s local media properties Newsday, News 12, MSG Varsity, and Clearview Cinemas. The company also said they are not exploring a sale of Rainbow or its cable and telecommunications business.