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Liberty Satellite To Acquire Astrolink

By | January 27, 2003

      Liberty Satellite & Technology, a majority owned entity of Liberty Media [L], has reached an agreement with Lockheed Martin [LMT], Northrop Grumman’s [NOC] Space & Mission Systems division and Telespazio S.p.A. concerning the proposed restructuring of their Astrolink International satellite broadband venture.

      Liberty Satellite owns 31.5 percent of Astrolink, with the remainder owned directly or indirectly by Lockheed Martin, Northrop Grumman, and Telespazio.

      Under the agreement, Liberty Satellite would pay $43 million in cash and $3 million in stock for Astrolink’s assets, including existing satellite and launch contracts, and the settlement of all claims against Astrolink. At the same time, Astrolink has signed agreements with Lockheed Martin and Northrop Grumman for completion of two satellites.

      Liberty Satellite’s acquisition of the Astrolink business is subject to regulatory approvals and other closing conditions, including Liberty Satellite obtaining satisfactory funding for the business from additional investors, third party sources of financing, or firm capacity commitments from prospective customers. The closing is expected by Oct. 31.