Notice 2 of the 7 networks are in Ca. and Fla.
Cablevision's Rainbow Media and FOX/Liberty Complete Transaction to Create Sports Partnership
FOX/Liberty Networks Invests $850 Million for a 40% Stake in
Rainbow Sports, Creating National Cable Network Serving
55 Million Households
NEW YORK--(BUSINESS WIRE)--Dec. 18, 1997--
Cablevision Systems Corp's (ASE:CVC - news) Rainbow Media and FOX/Liberty Networks announced today the completion of their strategic alliance announced in June of this year.
This alliance combines the sports programming breadth and expertise of FOX, Liberty and Rainbow, creating the country's preeminent national and regional sports network. Not only will this alliance significantly enhance the value of the regional networks, but it will also provide national and regional advertisers with a ''one-stop-shopping'' vehicle to reach sports viewers across the country.
FOX/Liberty Networks contributed $850 million for a 40% equity interest in a new joint venture which will own Rainbow Media's sports businesses and networks, currently operating under the brand name of SportsChannel, as well as Madison Square Garden (MSG) LP which includes the arena complex, the Knicks and Rangers sports teams and the MSG Network. The sports programming entities include six regional SportsChannel networks (Areas of operation: Chicago, Florida, New England, New York, Northern California (Pacific) and Ohio)
Rainbow will use the proceeds to reduce its debt significantly and will maintain management control of its current regional sports networks. Rainbow will also maintain management and control of Madison Square Garden (MSG), including the Knicks and Rangers, the MSG network and the arena complex.
''This alliance represents a significant step forward in Cablevision's overall financial strategy of reducing leverage and focusing on our core business. It also highlights and enhances the value of Cablevision's key sports assets,'' said James L. Dolan, Cablevision chief executive officer. ''Rainbow could seek no finer partners than FOX/Liberty.''
Fox/Liberty Networks is a joint venture between News Corporation and Liberty Media Group.
The News Corporation Limited (NYSE: NWS, NWSpr; ASX: NCP, NCPDP; LSE: NEWCP) is one of the world's largest media companies with total assets as of September 30, 1997 of US$32.5 billion and total annual revenues of US$11 billion.
Liberty Media is a unit of Tele-Communications, Inc. In addition to its interests in domestic and international sports networks, Liberty has ownership interests in numerous cable television networks, including, among others Discovery Channel, The Learning Channel, Animal Planet, BET, QVC, HSN, Encore, and STARZ! Liberty Media Group Series A and Series B Common Stock are series of Tele-Communications, Inc. Common Stock and are traded on the Nasdaq National Market under the symbols LBTYA and LBTYB, respectively.
Cablevision Systems Corporation is one of the nation's leading telecommunications and entertainment companies, generating more than $2 billion in annual revenues. As the sixth largest operator of cable television systems, Cablevision serves more than 2.9 million customers in 18 states with major operations in Boston, Cleveland and the New York metropolitan area. Giving effect to the completion of the announced agreement with Tele-Communications, Inc., the Company's customer base in the NY metropolitan area will increase to more than 2.5 million customers. Its subsidiary, Rainbow Media Holdings, Inc., a partnership with NBC, manages entertainment, news and sports programming including American Movie Classics, Bravo, The Independent Film Channel and the SportsChannel regional network. The Company owns a majority interest in Madison Square Garden L.P., which includes the arena complex, the New York Knicks, the New York Rangers, as well as the MSG Network. The Company owns Radio City Productions and manages the operations of New York's famed Radio City Music Hall. Cablevision Lightpath, a wholly owned subsidiary, provides telephone service to more than 700 business customers on Long Island.
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Contact:
Rainbow Media Cablevision Systems Corp.
Contact: Christine Levesque Contact: Charlie Schueler
(516) 396-3202 (516) 393-1399
FOX Sports Net Liberty Media |
