CVC's 12-31-04 balance sheet shows total assets of about $11,000,000,000, liabilities of $14,000,000,000 and a retained deficit of about $3,500,000,000. Can some one explain to me how this money losing, debt ridden company with lunatic management is going to get $16,500,000,000 in cash to buy bankrupt adelphia?
Only in the cable business would this kind of idiocy seem "normal". My guess is that this is the last straw for CVC and that it flys apart and ends up in bankruptcy court like Adelphia.
I'm also betting this crashes down. What scares me is the level of insanity this company generates. I'm afraid I'm missing something??? I asked this board what makes the stock worth 30.00 and the general reply was it would be sold to some other cable company, I could see if there was a reasonable amount of debt but not the level of cvc. I was worried that somebody had some inside info that was generating all the confidence in the stock. Now, after watching closely for a month I'm convinced the technology is old, management is crazy, competition is fierce, and it appears to get worse every day. Yes, they have a good subscription base now but it's not going to get better and they will never be able to take care of there debt. Dolan can see that and thats why he is trying to start another company. Its like living in a million dollar house that you owe 1.5 million, the area is depreceating and you have no way to pay for your house. Who the hell is impressed with that?
Cablevision's bid appeared to surprise investors and analysts, who said the bid was at odds with its strategy of focusing on a contiguous group of cable systems in the suburbs of New York.
"It is really hard to see how Cablevision's participation in this deal makes any sense because it does not bring any geographic synergies to the table," said Craig Moffett, a cable analyst at Sanford C. Bernstein & Company. "Cablevision would emerge an overleveraged, midsize cable operator that would dilute what is today a superhigh-end, well-clustered cable market in New York."