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Cable Technology Feature Article

January 13, 2010

Cablevision's Board of Directors Approves Madison Square Garden Spin Off Unit

By Kelly McGuire, TMCnet Editor

While Cablevision has been feeling the wrath of its customer’s discontent with the loss of the Food Network and Home and Garden TV channels, it looks like good news is on the horizon for the company, albeit for a different issue.

According to company officials, the Board of Directors approved the cable provider’s spin-off of its Madison Square Garden unit on Tuesday, Jan. 12, 2010. 

For Cablevision shareholders, this means changes. 

As of close of business on Jan. 25, 2010, each shareholder will receive one share in the monumental New York arena for every four shares of Cablevision on Feb. 9, 2010. 

The new transaction gives the sport and entertainment venue a market capitalization of around $1.6 billion based on Cablevision's closing price of $25.92.

Shareholders in Cablevision, such as prominent investor Mario Gabelli, have been anxiously awaiting a move like this from the television systems provider. 

According to reports, like Cablevision, Madison Square Garden will be controlled by the Dolan family through Class B shares.

Kelly McGuire is a TMCnet Web editor, covering CRM and workforce technologies, and anchor of its daily TMC Newsroom video broadcast. Kelly also writes about eco-friendly "green" technologies and smart grids, compiling TMCnet's weekly e-Newsletters on those topics, as well as the cable industry. To read more of Kelly's articles, please visit her columnist page.

Edited by Kelly McGuire