Rainbow Media Holdings, a Cablevision Systems Corporation (NYSE: CVC) programming subsidiary, announced today that it will acquire 100% ownership of the Sundance Channel. Sundance is currently owned by NBC Universal, which is owned General Electric (NYSE: GE), and Showtime Networks, which is owned by CBS Corporation (NYSE: CBS), as well as various entities controlled by Robert Redford.

The exchange will be valued at approximately $496 million and consists of a tax-free exchange of 12.7 million GE shares held by Rainbow and given to General Electric and cash given to CBS and Redford entities for their interests.

Sundance began in 1996 under the direction of Robert Redford, with the goal of creating a channel that brings dedicated viewers while promoting artistic freedom of expression through various films, series, and documentaries. It now reaches some 30 million subscribers and with the acquisition, Sundance will join Rainbow's portfolio of channels, including AMC, IFC and WE.

Jon Ogg produces and edits the Special Situation newsletter for 247WallSt.com.

Yesterday's departure of Citigroup, Inc. (NYSE: C) executive Todd Thomson may have been helped along by his use of Citigroup's corporate jet to fly General Electric Company's (NYSE: GE) CNBC reporter, Maria Bartiromo from Asia. This is just the tip of the iceberg. Todd & Maria-gate Memo will follow the ongoing saga.

This morning's Wall Street Journal [subscription required] reports that Todd Thomson used $5 million of his Citigroup marketing budget to finance a Sundance Channel program which was slated to be hosted by Robert Redford and Maria Bartiromo. [Bartiromo is no longer slated to host this program].

But wait, there's more. In 2005, current Chief Operating Officer Bob Druskin spotted Thomson having dinner with Bartiromo at the ritzy Daniel restaurant while Druskin was hosting a holiday dinner there for his investment banking management team.

Last November, Thomson flew Bartiromo to speak to Citigroup's private-banking clients at luncheons in Hong Kong and Shanghai. He flew with a group of Citigroup employees to Asia, but flew back to the U.S. on the corporate jet with Bartiromo.

After this November incident, Citigroup CEO, Chuck Prince, asked Thomson to stop spending Citigroup money on Bartiromo. Six weeks later, Thomson surprised Prince with The Sundance sponsorship announcement. This prompted Thomson's departure.

This saga raises questions of interest to Citigroup and GE investors, including:

• After all of Prince's blunders, are Citigroup directors debating his fate?
• Was GE CEO, Jeff Immelt, involved in approving Bartiromo's $48,000 flight from Asia on Citigroup's jet?
• Will GE require CNBC anchors to disclose their business relationships with the companies they cover?

Peter Cohan is President of Peter S. Cohan & Associates, a management consulting and venture capital firm, a Professor of Management at Babson College, and editor of The Cohan Letter. He has appeared as a guest on CNBC and owns Citigroup and GE stock.