Malone Says VOOM’s Prospects Are Bleak

Cable industry mogul John Malone, recently named to Cablevision’s board by chairman Chuck Dolan, told investors and analysts on a conference call that he doubts VOOM can survive as a standalone satellite provider. Reuters reports that Malone said of financing VOOM, “I wouldn’t do it with my money,” and “We were offered on a number of occasions an opportunity to participate in a third satellite competitor and we declined because we didn't think the risks were warranted by the potential returns.” Malone went on to say that in his opinion, the only way VOOM can survive is if it is acquired by DirecTV or EchoStar and merged into their operations.

Taking a contrarian view, the New York Post ran a piece on Sunday saying that Malone is interested in investing in VOOM. Here’s an excerpt:

“Industry watchers say a chunk of that financing will come from Malone, predicting that Malone and Dolan will team up for a joint venture to acquire VOOM from the Cablevision stable. Sources say Dolan will likely borrow against his shares, and Malone, who’s worth $2 billion, will tap his deep lines of credit. Malone, a tech savvy cable pioneer who sees the same potential riches in VOOM, is ready to invest billions, industry sources say.”

Maybe the Post needs to check its sources a little better...