10.01.2007 12:00 AM
EchoStar acquires Sling Media

EchoStar has signaled that it may split into two publicly traded companies, one to operate its DISH satellite television service and the other to focus on new television-related technology.

EchoStar revealed the plan one day after announcing that it would acquire Sling Media, the privately held maker of the Sling Box, for $380 million. The Sling Box allows users to watch television that’s streamed from their homes to a computer or other Internet-connected device.

Charlie Ergen, CEO of EchoStar, said that any split in the company wouldn’t affect DISH network’s 13.6 million customers, but would allow the company to pursue multiple goals and unlock additional value. “This combination paves the way for the development of a host of new innovative products and services for our subscribers, new digital media consumers and strategic partners,” Ergen said.

EchoStar is awaiting an IRS decision as to whether a split could be done in a tax-free manner for both it and its shareholders. Current shareholders would receive shares in the new company. If the split occurs, the new technology company would pursue set-top box design and ventures to provide satellite services for other companies.

EchoStar was an early investor in Sling Media, along with Liberty Media and Goldman Sachs. Based in Foster City, CA, Sling was founded in 2004 and pioneered the concept of “location shifting” recorded television programs.

Ergen would continue to serve as chairman and CEO of DISH Network and fill the same roles with the new company. The board of directors would have to approve splitting the company and confirm that the spin-off would qualify as tax-free.

Post New Comment
If you are already a member, or would like to receive email alerts as new comments are
made, please login or register.

Enter the code shown above:

(Note: If you cannot read the numbers in the above
image, reload the page to generate a new one.)

No Comments Found

Tuesday 03:07 PM
WMUR-TV Says FAA Drone Rules Preclude ENG
The FAA’s current rules and proposed ban on flight over people, requirement of visual line of sight and restriction on nighttime flying, effectively prohibit broadcasters from using UAS for newsgathering. ~ WMUR-TV General Manager Jeff Bartlett

Sue Sillitoe, White Noise PR /   Monday 05:38 AM
DPA Microphones Takes On A Downpour at the 2015 BRIT Awards
Manor Marketing /   Monday 06:52 AM
Cinegy to clarify the Cloud at NAB seminars

Featured Articles
Discover TV Technology