Cablevision Gets Rupert’s Garden

Cablevision has split its joint venture with Rupert Murdoch’s News Corp., regaining full control of Madison Square Garden and fueling speculation that the cable operator is preparing itself for a sale.

Analysts have been speculating for years that Cablevision would eventually offer itself up for sale, probably to Comcast or Time Warner, according to The Wall Street Journal. A split with Murdoch’s company would simplify its portfolio, making the company more enticing to a buyer.

News Corp. President/COO Peter Chernin said the two companies have “diverging interests,” prompting the end of the eight-year, 60/40 split in which Cablevision had the controlling percentage.

Cablevision now has 100 percent of MSG, Radio City, MSG Network and three professional sports teams – the Knicks, Rangers and Liberty.

“At this stage, having full ownership and management of these properties under one parent will greatly simplify the financial and operating structure of these businesses, while allowing Cablevision to consolidate our sports and entertainment interests in the key New York market,” Cablevision Vice Chairman Hank Ratner said.

News Corp. will now fully own Fox Sports Net among other properties. The original joint venture deal will continue for FSN Bay Area.

Cablevision’s stock rose 11 cents per share upon the announcement.