Cablevision Systems Corporation (CVC) - NYSE
  • Sep. 21, 2015, 5:16 PM
    | Sep. 21, 2015, 5:16 PM
  • Sep. 18, 2015, 8:20 PM
    • Patrick Drahi, the billionaire head of France's Altice (OTCPK:ATCEY), has a reputation for aggresive cost control, and he may have his best target yet in Cablevision (CVC +1.9%).
    • Drahi sealed a $17.7B deal to acquire Cablevision from the Dolan family and create the fourth-biggest operation in U.S. cable.
    • At Communacopia, Drahi said more than 300 employees at Cablevision make more than $300,000/year: "This we will change."
    • He's angling for a heavy $900M in cost cuts annually at Cablevision, which may be tough even at the fattest company. Cablevision spends $49/month in operating expense per customer, and Suddenlink (another recent U.S. Altice target) spends $32 per customer; at Numericable, Altice's French cableco, the spend is $14/month per customer.
    • Cutting expensive managers is one thing, but Cablevision workers conducted a lengthy fight to form a union before a new two-year contract in February.
    • Previously: Analysts see done deal for Cablevision, and Altice seeking more targets (Sep. 17 2015)
    • Previously: Confirmed: Altice to buy Cablevision for $17.7B (Sep. 17 2015)
    | Sep. 18, 2015, 8:20 PM | 6 Comments
  • Sep. 17, 2015, 11:11 AM
    • Cablevision (NYSE:CVC) is up 15.3%, hitting highs it hasn't seen in more than four years, in the wake of its $17.7B deal to be acquired by France's Altice (OTCPK:ATCEY).
    • Shares are trading at $32.90 against Altice's $34.90/share proposal, though analysts are sounding off largely in consensus that there shouldn't be any regulatory issues with the deal. Altice was up nearly 13% in Amsterdam, but has settled down to a gain of 0.8%.
    • Most analysts rate Cablevision a Hold. The combination doesn't surprise Pivotal's Jeff Wlodarczak, but the price does a bit, considering a willing seller and Altice likely the only bidder; he expected a $32.50/share deal.
    • Wunderlich's Matthew Harrigan was surprised the sale happened with this FCC in place; he expected a deal after a new administration, perhaps to Liberty's John Malone or Charter's (and formerly Cablevision's) Tom Rutledge.
    • Michael McCormack at Jefferies thinks Comcast (NASDAQ:CMCSA) or Charter (NASDAQ:CHTR) could look at getting into the bidding for Cablevision. He says a synergy target of $900M "looks aggressive" and implies some best-in-class margins.
    • Overall, analysts are taking Altice's Patrick Drahi at his word: The company probably isn't done expanding in the U.S. Likely targets could be any number of telecom assets, including private players like Cox or Mediacom, or CLECs.
    | Sep. 17, 2015, 11:11 AM | 1 Comment
  • Sep. 17, 2015, 9:15 AM
    | Sep. 17, 2015, 9:15 AM
  • Sep. 17, 2015, 3:11 AM
    • Securing an even bigger U.S. footprint, French media giant Altice (OTCPK:ATCEY) has confirmed it will buy Cablevision (NYSE:CVC) for an enterprise value of $17.7B, or $34.90/share in cash (a 22% premium to Wednesday's closing price).
    • "Together both operators represent the fourth-largest cable operation in the U.S. market," the companies said in a statement.
    • In May, Altice's brash chief Patrick Drahi scooped up U.S. cable firm Suddenlink for $9.1B after ditching a run at Time Warner.
    • Previously: Cablevision up 16.1% after hours on report of $17.7B takeover by Altice (Sep. 16 2015)
    | Sep. 17, 2015, 3:11 AM | 5 Comments
  • Sep. 16, 2015, 8:34 PM
    • French media giant Altice (OTCPK:ATCEY) has a done deal to buy Cablevision (NYSE:CVC) for $34.90 a share, or $17.7B including debt, The New York Times is reporting.
    • Cablevision shares closed today at $28.54, and wrapped after-hours trading up 16.1%, to $33.12. The reported per-share price is a 22.3% premium to today's close.
    • The company, the longtime province of the Dolan family, has seen its stock move on buyout speculation a few times this year, amid a wave of media/telecom consolidation.
    • For its part, Altice and its brash chief -- billionaire Patrick Drahi -- signaled intentions to secure a big U.S. footprint, starting with a $9.1B acquisition of Suddenlink and accelerating with an abortive run at Time Warner Cable. ("We weren't ready," Drahi acknowledges.)
    • After Charter Communications signed a deal to acquire TWC, and AT&T completed its deal for DirecTV, Cablevision is one of the last big targets in an industry with shrinking numbers of players, though, and so regulatory scrutiny may be key to a successful closure.
    | Sep. 16, 2015, 8:34 PM | 2 Comments
  • Sep. 16, 2015, 7:53 PM
    • Altice (OTCPK:ATCEY) is very close to a deal to buy Cablevision (NYSE:CVC) for $16.7B including debt, in a deal that could be announced as soon as tomorrow, according to media reports, which vary from advanced talks to done deal.
    • Cablevision shares are up 9.6% after hours.
    • It would be one of the larger deals of the year, even in a sector rife with consolidation.
    • Details are developing.
    | Sep. 16, 2015, 7:53 PM
  • Sep. 16, 2015, 7:03 PM
    • J.P. Morgan analysts warn that companies with large amounts of floating-rate debt - including Chesapeake Energy, Freeport McMoRan, Ford and GE - could be at risk if the Fed decides to raise interest rates.
    • Companies with variable/floating-rate debt suffer a more immediate impact by a rate hike than companies with fixed-rate debt, the analysts say; variable-rate coupons typically reset quarterly, meaning that changes in the base rate flow through almost immediately to variable-rate borrowers, while fixed-rate borrowers do not see such an impact until they refinance or issue new debt.
    • JPM lists 25 companies - not including financials - that have the “highest variable-rate debt as a percentage of market cap": FMC, NRG, FCX, AES, CVC, LVLT, PVH, CHK, FE, DVA, THC, OI, CNX, F, HCA, FOSL, RCL, JOY, GE, ADS, ALLE, HBI, GT, DNB, AN
    | Sep. 16, 2015, 7:03 PM | 66 Comments
  • Sep. 10, 2015, 4:43 PM
    • Cablevision Systems (CVC -2.7%) is up more than 32% YTD, but Citigroup's sticking to its "contrarian" view that its movement of late is based on unlikely acquisition hopes.
    • The firm's Jason Bazinet has a $21 price target on the shares along with a Sell rating. Shares closed today at $27.29 -- an implied downside of 23%.
    • The stock's performance, he says, may be due to investor hopes that Altice (OTCPK:ATCEY) -- the french telecom that acquired Suddenlink -- could snap up Cablevision. But Citigroup thinks a target of the FiOS/wireline business of Cablevision competitor Verizon (NYSE:VZ) is far more likely.
    • Without a sale, though, he figures fair value at $18/share for Cablevision, vs. $34/share with a sale.
    • That's due to the firm's 25% probability of an Altice acquisition: "In effect, if Altice acquires Cablevision, we see $6 upside to the stock. But, if Altice acquires Verizon [wirelines], we see $10 downside in Cablevision's shares. That's a risk-reward we don't find attractive." In any case, CVC won't trade sideways, he says, with some kind of sale likely eventually.
    • Previously: Cablevision up 7.2% as buy-minded Drahi drops name (Jul. 10 2015)
    • Previously: Cablevision up 11% following Altice/Suddenlink tie-up (May. 20 2015)
    | Sep. 10, 2015, 4:43 PM | 4 Comments
  • Sep. 10, 2015, 9:16 AM
    • Cablevision (NYSE:CVC) and Tribune Media (NYSE:TRCO) have reached a broad multi-year carriage deal that will see the cableco launch WGN America and take over Tribune's holdout stake in Newsday Holdings.
    • The addition extends WGN America's conversion to a basic cable channel, reaching 76M homes in nearly 80% of the network's footprint.
    • Cablevision customers will also continue to get Tribune Media's local stations in New York, Philadelphia and Hartford, Conn. The cableco also renewed its deal to use TV listings and movie information from Tribune's Gracenote,
    • The move for Tribune's 2.8% stake in Newsday makes that unit -- which includes the Newsday newspaper, amNewYork and Newsday Local Publishing -- fully owned by Cablevision.
    • Premarket: Cablevision is down 2%.
    | Sep. 10, 2015, 9:16 AM | 4 Comments
  • Aug. 25, 2015, 5:35 PM
    • investors should stick with "market darlings" - the 25 stocks that had performed the best during the six months before a market pullback - according to the analyst team at RBC.
    • The firm notes that although many recent winners are leading the market lower, the extent of the underperformance is just 1%; it also says investing in the group following sharp market pullbacks is a winning strategy over the ensuing week, month and six months.
    | Aug. 25, 2015, 5:35 PM | 61 Comments
  • Aug. 25, 2015, 10:16 AM
    • Cablevision (CVC +2.4%) and CBS (CBS +2.4%) have sealed a comprehensive multi-year carriage agreement that will see the cableco becoming the first MSO partner delivering over-the-top CBS All Access and Showtime Internet services.
    • The deal includes more traditional retransmission rights for CBS-owned stations as well as for Showtime, CBS Sports Network and the Smithsonian Channel.
    • The over-the-top moves are of a piece with Cablevision's 2015 actions, becoming a pioneer among pay TV to become the first old-line provider to offer Hulu, and becoming a launch partner for HBO Now.
    • Pricing plans for Cablevision's CBS All Access and Showtime streaming offerings will be set later.
    | Aug. 25, 2015, 10:16 AM
  • Aug. 11, 2015, 6:12 PM
    • In an ongoing tussle over advertising claims, a U.S. magistrate judge has ordered Cablevision (CVC -3.7%) to stop running ads accusing Verizon (VZ +0.8%) of lying about having the fastest Wi-Fi network.
    • Judge Gary Brown issued a temporary restraining order requiring Cablevision to pull ads accusing Verizon of dishonesty by Friday. The ruling comes days after he ruled against Cablevision's bid to block Verizon's ads claiming the "fastest Wi-Fi available."
    • Cablevision ads invoking Pinocchio, or Verizon reps with their "pants on fire," were "literally untrue and implicitly false" and likely to mislead consumers, Brown said. His ruling did reject Verizon's attempts to block other Cablevision ads.
    • Cablevision's Lisa Anselmo said the company would keep challenging Verizon claims "not only through the legal system but also in the court of public opinion."
    • In January, Cablevision said Verizon's ads were an attempt to hurt its launch of Wi-Fi voice/text/data service Freewheel.
    • Previously: Cablevision: We haven't dropped suit against Verizon (Jun. 18 2015)
    • Previously: Cablevision sues Verizon over false WiFi advertising (Jan. 30 2015)
    | Aug. 11, 2015, 6:12 PM
  • Aug. 7, 2015, 3:58 PM
    • Cablevision Systems (NYSE:CVC) spent the afternoon regaining ground from a decline after its Q2 earnings report. Shares are now down just 2.8% after declining as much as 7.8% in the morning.
    • On the company's earnings call today, CEO James Dolan says despite an avalanche of recent cord-cutting press, there won't be a "landslide" of customers dropping the traditional bundle in the near term. "I don't think the sky is falling quite yet."
    • But eventually more online content will become more appealing to customers as the traditional bundle increases in price, he said, putting a timeline to it: "My own prediction is it will be at least five years for 10% of the [pay TV] market to move, and 10 years for 30% of the market to move."
    • He also took a shot at Verizon, whose FiOS footprint has pressed Cablevision's territory: “The Verizon FiOS effect, if there ever was one, is, in our opinion, over ... To the extent that we’ve lost customers to FiOS, we believe they are usually promotional shoppers." He says Cablevision serves 3.1M customers, down from 3.3M in 2008, during which time Verizon has invested billions into building FiOS in greater New York.
    • Asked about repurchase resumption, CFO Brian Sweeney said the company sees the dividend as the primary return of capital, though they would look at opportunistic buyback in the future.
    • Previously: Cablevision -2% after report with solid Internet service growth (Aug. 07 2015)
    • Related: Cablevision Systems (CVC) James Lawrence Dolan on Q2 2015 Results - Earnings Call Transcript (Aug. 07 2015)
    | Aug. 7, 2015, 3:58 PM | 1 Comment
  • Aug. 7, 2015, 11:05 AM
    • Cablevision (NYSE:CVC) is 2% lower coming out of an earnings report where it beat profit expectations and added high-speed data customers at its fastest pace in years.
    • Operating income was down 4.5%, however, to $244.5M, and adjusted operating cash flow fell 2.7%.
    • Revenues by segment: Cable, $1.48B (up 1.8%); Lightpath, $91M (up 3.4%); Other, $91.3M (down 3.7%).
    • In Cable, the company logged net subscriber adds of 5,000 to end up with 3.117M at quarter's end. Among services: It shed 16,000 net video subs and 7,000 net voice subs, but added 14,000 high-speed data customers, most in more than two years, to end the quarter with 2.78M. Serviceable passings were 5.07M.
    • Monthly cable revenue per customer rose 3.8%, to $158.52.
    | Aug. 7, 2015, 11:05 AM
  • Aug. 7, 2015, 7:31 AM
    • Cablevision Systems (NYSE:CVC): Q2 EPS of $0.27 beats by $0.02.
    • Revenue of $1.65B (+1.2% Y/Y) in-line.
    | Aug. 7, 2015, 7:31 AM
Company Description
Cablevision Systems Corp. is a telecommunications and media company, which includes a full suite of advanced digital television, voice and high-speed Internet services, local media and programming properties. It operates through three reportable segments: Cable, Lightpath and Other. The Cable... More
Sector: Services
Industry: CATV Systems
Country: United States