SJI NewsWire Echostar/ASkyB merge
Date: Mon, 24 Feb 1997 22:39:00 -0500
From email@example.com Mon Feb 24 23: 11:56 1997
Satellite Journal Newswire
The News Corporation Limited and EchoStar Communications Corporation have
formed a new Direct Broadcast Satellite alliance designed to mount
vigorous competition in the subscription television market.
News Corporation will contribute to EchoStar cash, satellites and other
assets of News Corporation's American Sky Broadcasting having a total value
of $1 billion in return for 50% of the equity of EchoStar. MCI
Communications Corporation will own 20% of News Corporation's 50%
interest, or 10% of EchoStar.
The DBS transponder capacity at the orbital slots currently licensed by
EchoStar (which includes the use of 91 transponders at 61.5 degrees, 110
degrees, 119 degrees, 148 degrees and 175 degrees Western Longitude
orbital locations) and MCI (which includes the use of 28 transponders at
110 degrees West Longitude orbital location) will be made available for
use by EchoStar. The EchoStar DBS business will continue to be
headquartered in Englewood, Colorado and will operate under the trade name
Sky, which is utilised by News Corporation's DBS services around the
world. EchoStar is expected to spin off to existing shareholders certain
assets, including its manufacturing and international businesses.
Charles W. Ergen will continue to serve as the Chief Executive Officer of
EchoStar. Rupert Murdoch, Chairman and Chief Executive of News
Corporation, will serve as Chairman of EchoStar. Carl Vogel will serve as
Executive Vice President of EchoStar. Paul Haggerty, currently the Chief
Financial Officer of ASkyB, will be named Chief Financial Officer of
Preston Padden, Chief Executive Officer, of ASkyB has been named
President, Worldwide Satellite Operations for News Corporation. In this
capacity, Mr. Padden together with Mr. Murdoch, will oversee News
Corporation's investment in EchoStar and Mr. Padden will have primary
responsibility for co-ordination of News Corporation's DBS systems around
the world. Mr. Padden will report to Chase Carey, Co-Chief Operating
Officer of News Corporation.
The new Sky service is expected to include 7 satellites, more than 500
channels, advanced technology, retransmission of local TV stations in
markets representing more than 75% of all U.S. television households, low
consumer entry cost and superior customer service.
(c) Satellite Journal Itl.
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