Garden Party: Cablevision Looks to Spin MSG Businesses

Assets Could Be Worth $1.5 Billion

Mike Farrell -- Multichannel News, 5/7/2009 10:30:17 AM EDT

Cablevision Systems said Thursday morning that its board of directors has authorized management to explore the spin-off of its Madison Square Garden businesses.
In a research note, Miller Tabak media analyst David Joyce estimated the assets could be worth as much as $1.5 billion. The analyst said that a conservative valuation of the MSG properties would be about $755 million.
Cablevision reported consolidated revenue of $1.9 billion (up 10.6%) and consolidated adjusted operating cash flow of $590 million (up 14.3%) in the first quarter. The cable operations lost 6,300 basic video customers, but gained 9,400 digital video subscribers, 29,800 high-speed Internet customers and 51,400 telephone customers.
At MSG, revenue rose 2.3% to $271.3 million and adjusted operating cash flow was $15.9 million, compared to an AOCF deficit of $2.5 million last year.
Cablevision was scheduled to hold a conference call with analysts discussing results at 10 a.m.