EchoStar Splits in Two Companies

By Alexander Toldt
11:41, December 9th 2007
82 votes
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EchoStar Splits in Two Companies

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.



© 2007 - 2009 - eFluxMedia
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