Cablevision Systems Corp. said Thursday that it will spin off its recently launched Rainbow DBS satellite service, as well as three of its cable networks and other businesses.
The three networks involved are AMC, The Independent Film Channel and WE: Women’s Entertainment.
Cablevision will retain its regional cable and telecommunications businesses; Lightpath; Madison Square Garden and its teams; Radio City Music Hall; and certain other businesses, including Fuse, Clearview Cinemas, News 12, Metro Channels and Rainbow Media Holdings Inc.'s interests in regional sports networks around the country.
The company said in a release that this will allow it to focus primarily on its core regional cable, telecommunications, sports and entertainment assets. Cablevision will no longer retain the rights to offer direct-broadcast satellite service in the New York area.
Following the spinoff, James Dolan will become chairman of Cablevision while retaining his CEO position, and Charles Dolan will become chairman of the new entity.
"The spinoff will create two distinct companies for Cablevision shareholders, each with separate funding and management, defined business focuses and clear investment characteristics," the Dolans said in a prepared statement.
"Rainbow's national movie services and its developmental capabilities provide both content and financial resources for the spun-off company and, given the established financial strength of Rainbow's national services, the new entity will be able to pursue its business plans, including the development and delivery of its exclusive HD programming via satellite to the nation," they added.