By Kevin McCauley
Cablevision today announced it’s exploring the spin-off of its Rainbow Media cable programming division to shareholders in a bid to boost value. Wall Street cheered the news, bidding Cablevision stock up almost $3 to $31.90.
Rainbow channels include AMC (producer of “Mad Men”) , We tv (women’s entertainment), Sundance Channel (independent films) and Wedding Central. The unit owns IFC (specialty film production).
Cablevision will retain its cable TV operation that serves 3M homes in the New York metropolitan area, News 12 Networks, Newsday, Clearview Cinemas and MSG Varsity, which covers high school sports.
A spin-off would take place in mid-2011. Cablevision has ruled out the sale of either Rainbow or the cable systems.
Earlier this year, the company spun-off Madison Square Garden, which includes the New York Knicks, New York Liberty, New York Rangers and Radio City Music Hall. Cablvision’s founding Dolan family controls MSG via ownership of its Class B shares.
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