EchoStar Communications is considering a possible separation of its
businesses into two distinct publicly traded companies — one focused on
the U.S. consumer pay-TV business and the other on satellite network
operations.
The first business would consist of the DISH Network and its over 13.585
million U.S. DBS customers. Installation, customer service, billing and
other consumer services would continue to be operated by DISH Network,
together with most satellites and spectrum used to support that
subscriber base. Mr. Ergen would continue to serve as Chairman and CEO
of DISH Network, and would fill the same roles with the spun-off company.
The spin-off assets would include, among other things, EchoStar’s set
top box design and manufacturing business, its international operations,
and assets used to provide fixed satellite services to third parties,
together with satellites, uplink centers and spectrum licenses not
considered core to DISH Network’s subscriber business. the set-top box
business shipped over nine million units in 2006 to DISH Network and
international customers. The recently announced acquisition of Sling
Media adds to this.
EchoStar recently submitted a request to the Internal Revenue Service
for a ruling as to the tax-free nature of the transaction.
http:///www.echostar.com
