What Did CEO James Dolan Say That Spurred Cablevision 6% Higher?
Cablevision Systems Corporation (NYSE: CVC) shares shot up during midday trading Wednesday on back of comments made by its CEO, James L. Dolan. Dolan expressed strong interest in M&A consolidation in areas where his company operates.
CNBC's Julia Boorstin interviewed Dolan following his comments.
"The concept that I put forward is essentially that New York operates as one cable operation. There are several operators in New York – so, consolidation is more than, obviously, than one company," Dolan said.
"But the point was [...] the focus has been for big, large companies to get together, right? And to operate that way, that if we focused on the markets, I think that would bring more to the consumer and I think it will make the businesses more valuable," Dolan explained.
Both Parties Need To Recognize Potential Value
Dolan was asked what his plans are for putting into action what he is proposing. He replied, "It's like anything else. We are interested; they'd [Time Warner Cable] have to see the value in it, too.
"I am sure I will talk to them about the value of it, because I think it's there. I think we can prove it, and we will see what happens."
On whether he really needs to merge Cablevision with another company, Dolan said, "No, we are doing just fine."
However, Dolan went on to reinforce his position, "But what we are seeing is, because of the innovation [...] the competition has brought us, that there is a lot more opportunity in the market and particularly when you put the whole market together."
Image Credit: Public Domain
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.