|
Hughes to buy PrimeStar
|
 |
January 21, 1999: 3:26 p.m. ET
DirecTV owner to pay $500M for rival satellite television company
|
NEW YORK (CNNfn) - Hughes Electronics Corp. plans to announce it is buying satellite-television company PrimeStar Inc. for $500 million, a source close to the deal told CNNfn Thursday.
In addition, DirecTV, the Hughes-owned satellite-TV company, will pay PrimeStar between $700-$800 for each subscriber that agrees to become a DirecTV subscriber. DirecTV has 4.5 million subscribers. PrimeStar has more than 2 million subscribers.
The companies are expected to announce terms of the deal after Thursday's market close.
The firms had reportedly begun merger talks last October.
Hughes (GMH) is a subsidiary of General Motors Corp. (GM).
PrimeStar is jointly owned by Tele-Communications Inc. (TCOMA), Media One Group (UMG), Cox Communications Inc. (COX), Comcast Corp. (CMCSK) and Time Warner Inc. (TWX) -- the parent of CNNfn. General Electric Co. (GE) owns a small minority stake.
Hughes shares fell 2-11/16 to 44-13/16 in late trade. 
|
|
|
|
|
 |
|
