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EchoStar Communications Corp., one
of the largest satellite TV providers of the United States, announced
shareholders and clients that it would split in two smaller companies. Formerly
known simply as EchoStar, the provider is now to split in Dish Network Corporation
and EchoStar Holding Co., according to SEC filings.
Named after EchoStar’s most
popular product, Dish Network Corporation will offer the former company’s
satellite broadcast services, while EchoStar Holding Co. will offer the
remaining fixed satellite and set-top box services. Charlie Ergen, the current
company’s chairman and CEO, will retain his titles as head of both companies.
EchoStar Holding Co., which will
eventually take on the name of its parent, EchoStar Communications Corp., will
also include Sling Media, which was bought by the company in October
for $380 million. The Slingbox is now one of the several set-top boxes that the
company could sell to other cable operators or satellite companies.
The split within EchoStar will
take place despite the fact that the company is currently being sued by rival
TiVo over patents allegedly used by its Dish subsidiary. However, it is still
not clear which of the two companies will own the disputed technology.
The split, which was recorded in
a SEC filing and was initially reported by blogger Om Malik, comes to refute
earlier rumors saying that EchoStar might be bought by AT&T.
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