Cablevision Systems Corp. said it signed a letter of intent under which Voom HD LLC, a new private company formed by certain Cablevision Class B Common Stock holders, including Cablevision Chairman Charles Dolan and Tom Dolan, will acquire the business assets and liabilities of Cablevision’s Rainbow DBS direct-to-home satellite television business that were not included in the announced sale of the Rainbow 1 satellite and certain ground assets to EchoStar Communications Corp. (SN, Jan. 24).

According to Cablevision, Voom HD will assume and indemnify Cablevision against substantially all of the liabilities of Rainbow DBS existing at the close of the transaction or thereafter incurred. Voom HD will acqure Cablevision’s interest in the Voom 21 high-definition channels that are currently carried exclusively by Rainbow DBS, various Ka- and Ku- band and MVDDS licenses, the SES Americom lease on the Rainbow 2 satellite, existing customer agreements and other Voom-related assets. Financial terms of the deal were not discloses, and the transaction is subject to approval by Cablevision’s board of directors.