Cablevision May Spin Off Rainbow Unit

Cablevision Systems Corp. (CVC) is considering spinning off its Rainbow unit, which includes cable channels AMC, Sundance and IFC.

The company may spin off the unit to its shareholders as a "tax-free pro-rata distribution," Cablevision said in a statement. The deal would be completed by mid-year 2011.

The spin-off would provide "each company with greater flexibility to pursue strategic objectives," Cablevision said.

Cablevision isn't considering selling the Rainbow unit or its cable and telecommunications business.