AMC Networks, Dish Shares Up on Settlement Carriage Deal
Programmer up as much as 4.4% Monday
By Mike Farrell, Multichannel News -- Broadcasting & Cable, 10/22/2012 4:55:19 PM
AMC stock has been up since last Thursday, when speculation was high that its defunct Voom HD channel would settle its $2.5 billion breach of contract suit against Dish. On Sunday, the two parties reached agreement, with Dish agreeing to pay $700 million in cash and restore AMC Network to its 14 million subscribers. Three more AMC channels -- IFC, WE tv and the Sundance Channel will be available to Dish customers on Nov. 1.
Also as part of the deal, AMC's former parent Cablevision Systems received $80 million in exchange for MVDDS wireless spectrum. AMC and Cablevision will split the settlement, with AMC receiving about $310 million and Cablevision (including the spectrum sale) will get $390 million. The satellite giant also agreed to carry MSG Networks' use music channel -- another Cablevision spin-off. Dish had not carried Fuse since 2010.
Most analysts saw the settlement as a positive for both sides -- AMC gets guaranteed cash and carriage of four networks that have been dark to Dish subscribers since June, and Dish avoids the possibility of having to shell out a multibillion-dollar legal award.
Click here to read the full story at Multichannel News.
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