Cablevision shareholders rejected the Dolan Family's $10.6 billion bid to take the company private on Tuesday. The Dolans needed the majority of shareholders unaffiliated with the family to approve the buyout for the deal to go through. The outcomes was not a huge surprise after two of the company's largest outside shareholders, ClearBridge Advisors and Gabelli Funds, spoke out against the deal last week (full story). CEO James Dolan said after the vote, "there is really nothing negative about today's outcome." He said he took the rejection as a "vote of confidence in the prospects of Cablevision, the company's management, its employees and the future of the cable industry." This was the third attempt by the Dolan Family to buy out the company. Cablevision's board did approve the $36.26/share buyout, but stipulated that the majority of shareholders not associated with the Dolan family also had to agree. With the credit crisis and increase in volatility hitting the market in the late summer, it looked like there was a chance for the deal to go through. However, today's meeting proved that shareholders either believe in the company's prospects or that they think the Dolan family will raise its bid. For now, the Dolans said they would not increase their bid and would never allow an outside company to acquire Cablevision. Shares of the company fell 2.7% after the vote was announced.
Commentary: Dolan Family Buyout of Cablevision Unlikely • Mr. Pot, Meet Mr. Kettle: Gabelli Opposes CVC Buyout
Stocks to watch: CVC. Competitors: CMCSA, TWC, VZ. ETFs: PRFS, XLY
Earnings call transcript: Cablevision Q2 2007
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