As the family controlling a cable operator seeks to take the company private, how should the board handle a situation where various stakeholders are at odds?
As the family controlling a cable operator seeks to take the company private, how should the board handle a situation where various stakeholders are at odds?
In the fall of 2007, the family controlling Cablevision made its third attempt in two years to take the company private. The Dolan family's previous attempts failed partly due to resistance from outside investors and an independent committee, with both citing the offers as inadequate. A complicating issue is Cablevision's dual class structure, with the Dolan family holding super-voting shares. With more leeway on governance rules because of its status as a "controlled company," Cablevision's board determined all non-Dolan directors were independent, even though some had ties to the family. In this case students examine the structure of Cablevision's board, the company's competitive outlook, and industry financial data before discussing the board's role during the takeover offers.About the Author(s)
