MUMBAI: Cable TV operator Cablevision Systems Corp. is hiving off the Rainbow Media Holdings, holder of cable channels such as AMC and Sundance and the IFC suite of independent film production entities.

According to the announcement made by Cablevision, the hive off is expected to be completed by mid-2011. The company has made it clear that it doesn‘t intend to sell Rainbow or its cable and telecommunications business. 
 
Said Cablevision chief executive James Dolan, "We believe this will provide both Cablevision and Rainbow with greater flexibility to freely pursue their own strategic objectives."

Dolan also said that two distinct companies will be formed -- one focusing on the provision of cable TV signals and hook-ups and another on programming.

Cablevision will retain businesses including the cable and telecommunications businesses, newspaper Newsday, News 12 Networks, MSG Varsity and Clearview Cinemas.  
 
As part of the deal, Rainbow will be paying back about $1.25 billion of debt on Cablevision‘s books.

Cablevision‘s both class A and B shareholders will get Rainbow stocks.

Dolan family will continue their control over both the companies through their class B shares.