Charles Dolan has stepped down as govt chairman of AMC Networks, marking the tip of an period for the cable business.
Dolan, 93, ranks among the many earliest pioneers of cable TV. The telecom entrepreneur had the foresight to wire components of Manhattan for cable service within the 1960s and in 1971 launch the pay TV service that grew to become HBO. He’s been chair of AMC Networks for the reason that firm was spun off from the Dolan household’s former cable empire, Cablevision, in 2011.
AMC Networks board member James Dolan will substitute his father as non-executive chairman of the corporate. Charles Dolan will shift to chairman emeritus. Charles Dolan’s web price is valued by Forbes at $4.7 billion following the sale of Cablevision to Altice USA for $17.7 billion in 2016.
“The Dolans have led this firm from its inception, and each Charles and Jim have offered imaginative and prescient, steering and assist by way of its lengthy historical past of progress and evolution,” mentioned Josh Sapan, president-CEO of AMC Networks. “We stay up for their continued management as AMC Networks continues to face out in a crowded setting by way of the power and high quality of our content material and skill to forge sturdy and lasting relationships with viewers and followers.”
AMC Networks additionally disclosed Tuesday that Sean Sullivan, govt VP and chief monetary officer, will go away the corporate subsequent month to affix Sirius XM Satellite tv for pc Radio. His position shall be changed. Sullivan’s choice to resign “was not associated to any disagreement with [AMC] on any matter referring to [AMC’s] operations, insurance policies or practices,” AMC mentioned in a Securities and Change Fee submitting.
AMC is within the midst of launching a $250 million inventory buyback initiative structured as a young supply for shares at a value vary of $22.50 to $26.50. AMC inventory was down almost 8% on Tuesday, closing at $20.77. AMC shares are down about 47% for the 12 months up to now amid the macroeconomic turbulence brought on by the pandemic as effectively as the particular challenges for the ad-supported primary cable sector that’s the core of the corporate’s earnings.
The tender supply, described as a “modified Dutch public sale,” is supposed to sign the corporate’s religion that the inventory will return to pre-pandemic ranges.
“AMC Networks has a powerful monetary place and the proposed tender supply is a major expression of power and the Board’s confidence in our firm’s future,” Sapan mentioned.