Itchy
December 14th, 2001, 09:30 AM
Vivendi buying 10 percent Echostar stake
By Reuters
December 14, 2001, 6:25 a.m. PT
PARIS--Media giant Vivendi Universal said Friday that it would pay $1.5 billion for a 10 percent stake in U.S. pay-television company Echostar under an eight-year distribution alliance.
Vivendi said in a statement that its investment would help fund Echostar's merger with DirecTV, part of Hughes Electronics, and said it would own less than 5 percent in the merged group once the deal is complete.
The deal with Vivendi will see Echostar issue $1.5 billion in new stock at a price of $26.04 per share, Vivendi said.
Vivendi has long coveted a U.S. distribution network for its Universal Studios film and television library, and is in talks to buy USA Networks' cable channels and film and television production assets.
By Reuters
December 14, 2001, 6:25 a.m. PT
PARIS--Media giant Vivendi Universal said Friday that it would pay $1.5 billion for a 10 percent stake in U.S. pay-television company Echostar under an eight-year distribution alliance.
Vivendi said in a statement that its investment would help fund Echostar's merger with DirecTV, part of Hughes Electronics, and said it would own less than 5 percent in the merged group once the deal is complete.
The deal with Vivendi will see Echostar issue $1.5 billion in new stock at a price of $26.04 per share, Vivendi said.
Vivendi has long coveted a U.S. distribution network for its Universal Studios film and television library, and is in talks to buy USA Networks' cable channels and film and television production assets.