The Dolan family launched a $19.2 billion leveraged buyout bid to take Cablevision Systems private. In addition to cable systems, the company also controls Madison Square Garden, Radio City Music Hall, and the NBA Knicks and NHL Rangers.
The Dolans are offering $27 a share, more than the last time, reflecting the company’s higher stock price and the inclusion of the company’s other properties.
The bid includes $7.9 billion in cash, with the balance financed by debt.
The Dolans attempted to take private hold of the cable portion of the business two years ago. In the interim, Cox Communications and Insight successfully went private.
The last time the Dolans attempted to take the company private, a committee of independent directors was formed to review the bid. A similar process is expected for the new bid. The committee considering the previous bid helped defeat it. With the new bid, the Dolans are said to have taken into consideration objections to the previous bid.
In a letter to Cablevision’s board proposing the family’s takeover bid, company founder Charles F. Dolan, and his son, Cablevision CEO James L. Dolan, wrote, “We continue to feel that succeeding in this fiercely competitive environment requires a long-term, entrepreneurial management perspective that is not constrained by the public markets’ constant focus on short-term results.”