Cablevision Sells Satellite to EchoStar
The New York Times > Business > Media & Advertising > Cablevision Sells Satellite to EchoStar Cablevision has agreed to sell Voom to Echostar for $200 million. It looks like EchoStar will continue to operate Voom in the short-term but it’s longer-term outlook is less certain.
Voom, which started in 2003, has only 26,000 subscribers and has lost more than $76 million. EchoStar said it would continue to provide service to its current customers during a transition period, but did not elaborate on what would eventually happen to them.
Under the terms of the deal yesterday, EchoStar will pay $200 million in cash for Cablevision’s satellite, called Rainbow 1, as well as federal licenses to construct, introduce and operate satellite services over 11 frequency channels. In addition, EchoStar will buy the company’s ground facility in Black Hawk, S.D., and related assets.
“EchoStar, which operates under the Dish brand, said it was “assessing how the Rainbow satellite’s flexibility can best be utilized to enhance Dish Network’s existing service.”
Cablevision, which is based in Bethpage, N.Y., said it would continue to explore strategic alternatives for its remaining Rainbow DBS-related assets, including programming, equipment and spectrum. ”
Thanks, Lost Remote!