Echostar Purchases Voom HDTV Satellite Company (1 Viewer)

EricTheRed

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Dec 29, 2004
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EchoStar, announced that it will purchase the Rainbow 1 satellite used by Voom, plus the rights to 11 DBS frequencies. EchoStar will pay $200 million to Cablevision, Voom's parent, for the assets.

March 7, 2005 -- EchoStar, announced that it will purchase the Rainbow 1 satellite used by Voom, plus the rights to 11 DBS frequencies. EchoStar will pay $200 million to Cablevision, Voom's parent, for the assets.

The deal would seem to be the end for Voom, which has lost hundreds of millions of dollars for Cablevision since its launch in October, 2003. Despite a massive advertising campaign and a lineup of nearly 40 High-Definition TV channels, Voom has generated less than 30,000 subscribers. Cablevision's board this week refused Chairman Chuck Dolan's request to increase funding for the service.

EchoStar said it was still considering how it would use the Voom satellite -- and its DBS frequencies. However, the satcaster could use the extra space to provide local HDTV signals. Rival DIRECTV recently announced that it will launch four new satellites, enabling it to offer local HD in 12 cities as early as this summer.

Cablevision issued a press release Thursday night saying that it would continue to explore strategic alternatives for its remaining satellite assets, which include exclusive high-def channels and satellite spectrum. The company said it would also continue to provide service to its current Voom customers during an unspecified transition period.

Source:
http://press.xtvworld.com/modules.php?name=News&file=article&sid=4581
 

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