DTH

DirecTV acquires Pegasus' bankrupt satellite TV unit

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MUMBAI: DirecTV Group Inc. has agreed to acquire Pegasus Communications Corp.'s (PGTV) bankrupt satellite-television business for $875 million. The Pegasus Satellite Television provides DirecTV's DTH services to rural areas in 41 American states.



However, this agreement is subject to the approval of the US Bankruptcy Court in Portland which is expected by late August. By late September or early October, DirecTV hopes to migrate Pegasus's 1.08 million customers.



DirecTV Group CEO Chase Carey was quoted in a media report saying that this agreement would give them a true ability to reach every home in America. DirecTV would have unconditional access to an additional 10 million households and will be able to offer consumers in those rural markets the benefits of programming, pricing and service. Carey also said that the number of subscribers to DirecTV services in rural areas had declined in the last few years and this arrangement would enable them to reverse that trend and thus grow their subscriber base.



DirecTV (which is 34 per cent owned by News Corp.) also plans to end deals with other NRTC members and has offered them payments of $850 to $1,050 a subscriber.

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