They may not be as entertaining as the Rigas family, but the Dolans finally get to put Cablevision under their mattress, in a jar that contains $10.6bn worth of newly private company. The Dolans are set to pay $36.26 a share for their extended cable plan ($8 a month more for DVR/HD), which is an 11% per share premium over yesterday’s close and a hefty hike from their last bid of $30. This is even more than the October 2006 bid of $27 and obscenely more than the first 2005 bid of a 1989 Upper Deck Ken Griffey Jr. rookie card, a 1986 Donruss Jose Canseco Rated Rookie and the 1989 Fleer Billy Ripken error card (all those assets have considerably depreciated, causing a temporary panic in the Dolan camp).
The cable market is seen to be improving, with Comcast forecasting higher three-year revenue growth than analyst estimates and Time Warner reporting a greater than expected sub increase.
The Dolans need approval from a majority of Class A share owners before they can make the private magic happen.
Update:Also, click here to check out the memo the Dolan's sent to Cablevision employes. Exclusively on DealBreaker!
Cablevision Agrees to Be Taken Private By Dolans [Bloomberg]
Dolan Press Release [BusinessWire]