Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.
+1 212 318 2000
Europe, Middle East, & Africa
+44 20 7330 7500
+65 6212 1000
Shares of cable company Cablevision Systems Corp. rose Tuesday, a day after it announced that a planned spinoff of its cable networks will take place at the end of June.
THE SPARK: On Monday, the New York-area cable company said its board of directors approved spinning off its AMC, IFC, Sundance Channel and WE TV networks as a group. Cablevision said it will spin off AMC Networks Inc. June 30.
THE BIG PICTURE: People who hold Cablevision shares as of June 16 will get one share of AMC Networks Inc. for every four shares of Cablevision they own. Shares of the spun-off company will trade on the Nasdaq stock market under the symbol "AMCXV."
THE ANALYSIS: Spinning off the networks will get Cablevision close to being a pure cable company, which could attract more investors, said Nomura analyst Mike McCormack in a note to clients.
But Cablevision will still own media properties, including a New York-area television network, local newspaper Newsday and movie theater chain Clearview Cinemas.
McCormack kept his rating on Cablevision's stock at "Buy" and kept his price target at $41.
SHARE ACTION: Up $2.52, or 7.4 percent, at $36.64.