Cablevision’s Rainbow Media settled litigation with Time Warner o...
Cablevision’s Rainbow Media settled litigation with Time Warner over its AMC network, Rainbow CEO Josh Sapan said on a teleconference discussing 2nd-quarter results. He declined to discuss terms of the July 28 settlement in principle. A dispute between the…
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2 companies hurt affiliate revenue last quarter, Sapan said. Rainbow said 2nd-quarter operating income, sales and cash flow all fell, missing some analyst estimates. “Rainbow bears are gaining credibility in light of the mediocre Rainbow numbers,” Janco Partners analyst Matt Harrigan wrote in a client note. Time Warner Cable was allowed last month to end a 1993 carriage deal with AMC under a N.Y. State Supreme Court finding that AMC broke the terms of the deal (CD July 13 p11). Cablevision’s overall profit was $222 million in the quarter partly on the gain from the sale of affiliate interests, vs. a loss of $187.1 million a year ago, partly because of a loss on debt repayment.