Private media-investment firm Quadrangle Capital Partners LP has agreed to
invest $75 million in Cablevision Systems Corp. -- a deal that will give its
managing principal, Steve Rattner, a seat on the MSO's board of directors.
According to a press release, Quadrangle has agreed to invest $75 million in
Cablevision preferred stock convertible into class-A common shares of the
Rattner -- a former New York Times reporter and former deputy chairman
of investment boutique Lazard Frères & Co. LLC -- would be the
15th member of Cablevision's board.
The deal is subject to approval by the board.
'Steve is one of the most seasoned and respected executives in the field of
media and communications,' Cablevision chairman Charles Dolan and CEO James
Dolan said in a joint statement. 'We expect that he and his associates at
Quadrangle will offer valuable counsel to Cablevision.'
Quadrangle, parent of Quadrangle Partners, was one of the original investors
in Yankees Entertainment & Sports Network, the regional sports channel that
is locked in a carriage dispute with Cablevision. However, Quadrangle dropped
out of the partnership early on -- reportedly over economic issues -- well
before the Cablevision dispute ever came about.
'My partners and I believe fundamentally in the cable industry in general and
in Cablevision in particular,' Rattner said in a prepared statement. 'Chuck and
Jim Dolan have built an extraordinary company with a strong position in the most
important media market in the world. I'm honored to be joining the board and
look forward to contributing to the continued success of
Quadrangle was also involved as an adviser to Comcast Corp. in
its merger negotiations with AT&T Broadband.
USA Interactive Inc. chairman Barry Diller serves on Quadrangle's advisory
board, along with other media heavy hitters like former Continental Cablevision
Inc. chairman Amos Hostetter, RealNetworks Inc. founder Rob Glaser, Netscape
Communications Corp. cofounder Marc Andreesen and former McCaw Cellular
Communications Inc. chairman Craig McCaw.