A Fresh Deal at Cablevision?

Even before Cablevision Systems completes the spin-off of its Madison Square Garden (MSG) media, entertainment, and sports unit, the smart-money crowd is looking toward a possible sale of the company's remaining cable and telecom properties. "The spin-off paves the way for the sale of the rest of Cablevision," says Mark Boyar, president of Boyar Asset Management, which owns shares. He believes Cablevision (CVC) Chairman Charles Dolan, 83, who controls 70% of the voting stock, is ready to sell. His son, Cablevisison CEO James Dolan, is taking over the MSG operations, and Boyar says it's logical to expect that in such a situation the Dolans would unload the rest of the company. In the spin-off, investors get one MSG share for each Cablevision share they own. The fifth-largest cable-TV operator, Cablevision has holdings that include cable networks AMC, IFC, and Womens Entertainment (WE).

Christopher Marangi of investment firm Gabelli, which owns 6%, says the spin-off will unlock the value of the cable and telecom assets. Time Warner Cable (TWC) and Comcast (CMCSA) are apt to be interested in Cablevision's cable assets, says Marangi, who sees the shares, trading at 26.03 on Nov. 18, rising to 35. "Cablevision is well positioned to weather challenges," he says. Comcast declined comment.