EchoStar Considers Splitting Into Two Companies

EchoStar Communications Corp. said it is considering breaking up into two different companies – one focusing on satellite TV and the other based on its technology assets.

The company would retain its DISH Network satellite TV business, which has 13.6 million subscribers. The company said none of the subscribers would be affected by the move.

The technology company would focus on set-top boxes and manufacturing business.

"We believe separation of our consumer-based and wholesale businesses could unlock additional value," EchoStar chairman Charlie Ergen said. "Each company would be able to separately pursue the strategies that best suit its respective long-term interests.”

Ergen said he would remain as CEO and chairman of the satellite business and also hold those titles with the spin off.

The news comes a day after the Colorado-based company said it would acquire video technology company Sling Media Inc for $380 million.

EchoStar’s two-business plan was a boon for the company’s stock Tuesday. Through early afternoon trading, EchoStar’s stock was up $2.77, or 6.7 percent, to $44.09.

EchoStar Communications Corp. www.dishnetwork.com

Share this article: Email, Slashdot, Digg, Del.icio.us, Yahoo!MyWeb, Windows Live Favorites, Furl
Add this article feed to: RSS, My Yahoo, Newsgator, Bloglines