Cablevision Q2 Net Income Dips 8 Percent


Concurrent with its Q2 earnings, Cablevision announced that its board of directors has signed off on a plan to spin off its Madison Square Garden business, which includes the eponymous arena, the New York Knicks and Rangers sports franchises and the MSG and Fuse cable networks.

By way of announcing the move, Cablevision president and CEO James Dolan said the spin-off will “create two distinct companies, each with enhanced strategic flexibility, its own defined business focus and clear investment characteristics.” Dolan added that the company believes that the combined value of the assets “has not been fully realized, and that the transaction will be beneficial to shareholders as both Cablevision and MSG freely pursue their own individual business plans.”

Dolan will serve as the executive chairman of the standalone MSG, which is expected to be separated from Cablevision by the end of the year, pending approval from the Internal Revenue Service and the Securities and Exchange Commission. He will also retain his role as the head of Cablevision.

Under the terms of the proposal, the transaction is likely to take the form of a pro rata distribution of shares, with holders of Cablevision shares receiving shares in MSG. Cablevision stressed that it is not considering the sale of MSG or any other business at this time.