Cablevision is the frontrunner to acquire Robert Redford’s Sundance Channel, The Post has learned.
According to two sources close to the negotiations, Cablevision was the high bidder when final offers were submitted two weeks ago. While these sources said Cablevision appears to have pulled away from the pack, the James Dolan-led company is still facing stiff competition from other bidders involved in the process, including Time Warner and Viacom.
Sundance and its advisers at investment bank UBS are expected to make a final decision over the weekend and an announcement could come as early as Monday, sources said.
The final purchase price is expected to approach $500 million, they added.
“It’s a tight race,” said one of the sources.
Sources said the Sundance brand is expected to remain in use and that Redford will stay involved with the channel as part of the deal. Less clear was whether network CEO Larry Aidem will stay on board. Cablevision would house Sundance within its Rainbow programming unit, which is run by respected operator Josh Sapan.
An acquisition of Sundance by Cablevision throws cold water on the idea that Dolan is looking to sell Rainbow and instead suggests that he sees growth opportunities for his stable of cable networks, which includes IFC, AMC and WE: Women’s Entertainment.
“A deal for Sundance suggests that Cablevision is looking to bulk up on cable networks and position IFC as a larger entity,” said Pali Research analyst Richard Greenfield. “It would also diminish investor hopes that Rainbow is for sale.”
A $500 million price tag would equate to around $19 for each of Sundance’s 26 million subscribers (cable network values are generally priced per subscriber). The channel, which was spawned from Redford’s eponymous annual film festival, is available in more than 85 million homes.
Though Redford launched The Sundance Channel for artistic rather than financial reasons, the legendary star of such films as “The Sting” and “All the President’s Men” will net about $30 million for his 6 percent stake.
NBC Universal, which ranks as The Sundance Channel’s majority owner with a 57 percent stake, will gain about $285 million, while CBS will collect around $185 million for its 37 percent stake.
The Sundance Channel’s business model has been moving away from being based solely on subscription fees to selling advertising sponsorship’s around its programming. Citigroup and Lexus sponsored the launch of environmentally friendly show “The Green,” for instance.
Not unlike the deal for cable network Oxygen, The Sundance Channel auction illustrates how difficult it is for a standalone cable network to compete against larger players such as Viacom or Time Warner, which own a fleet of channels that can be bundled together to gain leverage against cable and satellite operators.
But a Cablevision acquisition would enhance The Sundance Channel’s financial prospects since it could be bundled with its other cable network holdings in carriage talks with distributors.
All the companies mentioned in this story declined comment or could not be reached for comment.