Nickoli
09-25-2007, 07:38 PM
Satellite TV operator EchoStar mulls splitting into 2 publicly traded companies By The Associated Press EchoStar Communications Corp. said Tuesday that it may split into two publicly traded companies, one to operate the Dish satellite TV service and the other to focus on technology development.
The news came one day after EchoStar said it would acquire Sling Media Inc., a privately held video technology company, for $380 million (euro269.4 million).
Sling's products include the Sling Box, which allows users to watch televison that's streamed from their homes to a computer or other Internet-connected device. The gadget has caused concerns among some program providers.
EchoStar's CEO Charlie Ergen said in a statement that any split in the company wouldn't affect Dish network's 13.6 million customers.
Ergen said the separation of the company's consumer and wholesale technology businesses would allow both to pursue their respective goals and unlock additional value.
Investors embraced the announcements, sending EchoStar's shares up $2.72 or 6.6 percent to $44.04 in morning trading Tuesday. The shares have traded between $31.40 and $49.69 over the past year.
EchoStar said it has asked the Internal Revenue Service to say whether the split-up could be done in a tax-free manner to EchoStar and its shareholders, who would receive shares in each new company.
The technology company to be spun off from EchoStar would include a set-top box design and manufacturing business, businesses that provide satellite service to other companies, and several international assets.
Ergen would continue to serve as chairman and CEO of Dish Network and fill the same roles with the spun-off company. The board of directors would have to approve splitting the company and confirm that the spin-off would qualify as tax-free.
Final terms and timing of the transaction have not yet been determined.
Copyright The Associated Press 2007. All Rights Reserved
hxxp://aftereffects.digitalmedianet.com/articles/viewarticle.jsp?id=187519
The news came one day after EchoStar said it would acquire Sling Media Inc., a privately held video technology company, for $380 million (euro269.4 million).
Sling's products include the Sling Box, which allows users to watch televison that's streamed from their homes to a computer or other Internet-connected device. The gadget has caused concerns among some program providers.
EchoStar's CEO Charlie Ergen said in a statement that any split in the company wouldn't affect Dish network's 13.6 million customers.
Ergen said the separation of the company's consumer and wholesale technology businesses would allow both to pursue their respective goals and unlock additional value.
Investors embraced the announcements, sending EchoStar's shares up $2.72 or 6.6 percent to $44.04 in morning trading Tuesday. The shares have traded between $31.40 and $49.69 over the past year.
EchoStar said it has asked the Internal Revenue Service to say whether the split-up could be done in a tax-free manner to EchoStar and its shareholders, who would receive shares in each new company.
The technology company to be spun off from EchoStar would include a set-top box design and manufacturing business, businesses that provide satellite service to other companies, and several international assets.
Ergen would continue to serve as chairman and CEO of Dish Network and fill the same roles with the spun-off company. The board of directors would have to approve splitting the company and confirm that the spin-off would qualify as tax-free.
Final terms and timing of the transaction have not yet been determined.
Copyright The Associated Press 2007. All Rights Reserved
hxxp://aftereffects.digitalmedianet.com/articles/viewarticle.jsp?id=187519