The founding family of Cablevision (CVC), the Dolan clan, are making another run at taking the company private. This time they are offering $36 a share, a 10% premium. The stock price went above their last tow offers as shares in the cable firm are up 70% over the last year.
And, why shouldn’t they go higher. Shares in Charter Communications (CHTR) are up 170% over the same period and Comcast’s (CMCSA) have risen about 35%.
Shares in cable companies continue to benefit from their sales of "triple play" packages that bundle voice, TV and broadband services. Comcast signed up over 500,000 VoIP customers in the last quarter. It believes it will have seven million voice customers by the end of 2009.
Cablevision trades at 1.6 times revenue and Comcast at 3.1x. Cablevision has $12 billion in long-term debt. Comcast has $28 billion.
Hopefully, the Dolans don’t get Cablevision this cheap.
Douglas A. McIntyre