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DirecTV buys USSB
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December 14, 1998: 7:05 a.m. ET
$1.3 billion deal will boost industry standing of GM's Hughes division
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LONDON (CNNfn) - General Motors subsidiary Hughes Electronics, which owns DirecTV, announced plans Monday to buy fellow satellite television service USSB in a deal worth about $1.3 billion.
United States Satellite Broadcasting Company shareholders will get 0.3775 of a General Motors Class H share (GMH) for each USSB (USSB) share they own. General Motors Class H stock, which represents Hughes Electronics, closed at $38.25 Friday.
Hughes will combine its DirecTV business with USSB, thereby boosting its programming roster to include premium channels HBO and Showtime.
DirecTV and USSB have already been partners for some time. The deal will boost the number of channels offered by DirecTV, which currently has 4.3 million subscribers and is the largest direct broadcast satellite service, from 185 to 210. Hughes will use new USSB frequencies to launch Spanish language services next year.
The deal is expected to close mid-1999.
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