Cablevision to End Rainbow Tracking Stock
Cablevision Systems Corp. said it would end the Rainbow Media Group tracking stock after 16 months of trading, raising the possibility that cable channels AMC, Bravo and Independent Film Channel would be sold.
Analysts said the move could be Cablevision’s first step toward putting the networks on the block to raise cash to meet its capital spending needs next year. Analysts estimate the funding gap could be $500 million to $1 billion.
Cablevision is divided into two operating units. Cablevision NY Group holds cable systems with nearly 3 million subscribers in the New York area, the New York Knicks basketball team, the New York Rangers hockey team and other assets; Rainbow Media holds AMC, Bravo, IFC and Women’s Entertainment.
Cablevision NY will exchange about 1.19 shares of its stock for each share of Rainbow stock.
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