Intelsat to Grow Global Footprint with PanAmSat Deal
August 31, 2005
If given a final go-ahead by federal regulators, satellite operator Intelsat plans to pay $3.2 billion to acquire rival PanAmSat, the company used by Disney, Time Warner and HBO, among others, to beam programming to cable distributors. Intelsat currently holds several big contracts with the U.S. government.
The Wall Street Journal cited the announced merger this week as a “bid to create the world’s largest commercial-satellite fleet with unparalleled influence over new offerings like high-definition TV and Internet access.” VOD, as well, is expected to be increasingly in demand via digital cable at the consumer level.
The agreement, if approved, would create the largest satellite company in the world with more than 50 satellites covering the Earth. Projected annual revenue is nearly $2 billion. As is the case now with Intelsat, the combined company's base would remain in Washington, D.C.; its corporate headquarters would stay in Bermuda.