DirecTV will pay $875 million in cash to obtain the assets of Pegasus Satellite Television, reflecting the full satisfaction and dismissal of claims against Pegasus that resulted in the $63 million judgment awarded to DirecTV in May. This purchase includes rights to all DirecTV customers activated through Pegasus.
Pegasus filed for Chapter 11 protection in June at which time the Waltham, Mass.-based company had 1.08 million customers.
This change should expand programming in rural America. Pegasus provides DirecTV programming to rural areas in 41 states.
"This agreement gives DirecTV a true ability to reach every home in America. DirecTV will have unencumbered access to an additional 10 million households and will be able to offer consumers in those rural markets the full benefits of DirecTV programming, pricing and service," said Chase Carey, president and CEO of The DirecTV Group.
If the U.S. Bankruptcy Court in Portland, Maine approves the transaction, it will be complete within the next four to six weeks. DirecTV expects to complete the migration of Pegasus customers to DirecTV by late September or October.
