DirecTV Agrees To Buy Pegasus Satellite TV Subscribers
The DirecTV Group of El Segundo, Calif., today announced the acquisition of the satellite TV subscriber base of Pegasus Satellite Television and its related entities for $875 million in cash and the forgiveness of all claims between the two parties — including a $63 million judgment entered in May in favor of DirecTV and against Pegasus. When combined, DirecTV is offering a purchase price to Pegasus of roughly $938 million.
The agreement has been approved by the creditors’ committee in Pegasus’ Chapter 11 proceedings. The transaction is to be completed within the next four to six weeks, subject to the approval of the U.S. Bankruptcy Court in Portland, Maine. The deal also must pass muster with U.S. government antitrust officials. DirecTV expects the bankruptcy court hearing to approve the transaction by late August, and the complete migration of Pegasus customers to DirecTV should follow 30 to 45 days thereafter. Pegasus had approximately 1.08 million customers as of June 1.