Looks Like Direcway is Up for sale
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San Diego-based satellite equipment and digital communications company ViaSat has emerged as a key second-round bidder for its rival DirecWay, which is being sold by DirecTV's Hughes Network Systems (HNS). Several US buyout firms, including Spectrum Equity Investors and Texas Pacific Group, are also thought to be interested.
Another DirecWay rival, Israel's Gilat Satellite Networks, has dropped out of the auction, run by investment bank Morgan Stanley, as has Cerberus Capital Management.
DirecWay provides satellite-based high-speed internet and communication services, with around 80% of the US market and more than 60% of the global market. Citigroup analysts say the sale could raise some $425m for DirecTV, controlled by Rupert Murdoch's News Corporation, the leading US DTH provider. Last year it generated about $800m in revenue.
DirecTV is offloading several hardware-related HNS assets to concentrate on its core business. The largest is satellite operator PanAmSat, which is going to buyout firm Kohlberg Kravis Roberts for $3.55bn; this month DirecTV sold its stake in PVR maker TiVo; in May, its set-top box manufacturing arm was bought by French media services group Thomson for $250m
Another DirecWay rival, Israel's Gilat Satellite Networks, has dropped out of the auction, run by investment bank Morgan Stanley, as has Cerberus Capital Management.
DirecWay provides satellite-based high-speed internet and communication services, with around 80% of the US market and more than 60% of the global market. Citigroup analysts say the sale could raise some $425m for DirecTV, controlled by Rupert Murdoch's News Corporation, the leading US DTH provider. Last year it generated about $800m in revenue.
DirecTV is offloading several hardware-related HNS assets to concentrate on its core business. The largest is satellite operator PanAmSat, which is going to buyout firm Kohlberg Kravis Roberts for $3.55bn; this month DirecTV sold its stake in PVR maker TiVo; in May, its set-top box manufacturing arm was bought by French media services group Thomson for $250m
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