ASKYB SELLS ASSETS TO PRIMESTAR.NEW YORK--(BUSINESS WIRE)--June 11, 1997--Primestar Partners L.P. and American Sky Broadcasting (80% owned by The News Corporation Limited and 20% owned by MCI Communications This article is about MCI before it merged with WorldCom. For other uses, see MCI. MCI Communications was an American telecommunications company that was instrumental in legal and regulatory changes that led to the breakup of the AT&T monopoly of American telephony and Corporation) today announced an agreement for the sale and transfer to Primestar of two satellites under construction and the license to operate a direct broadcast satellite business at the 110 West Longitude orbital slot using 28 transponder A receiver/transmitter on a communications satellite. It receives a microwave signal from earth (uplink), amplifies it and retransmits it back to earth at a different frequency (downlink). A satellite has several transponders. channels. The consideration to be received will consist of non-voting Primestar securities with a value of $1.1 billion which is equal to the News Corporation, MCI (1) (Media Control Interface) A high-level programming interface from Microsoft and IBM for controlling multimedia devices. It provides commands and functions to open, play and close the device. (2) (Microwave Communications Inc. and ASkyB cost of investment for the assets being sold and transferred, plus related interest expense. This sale of assets enables ASkyB, News Corporation and MCI to receive value for their DBS (Direct Broadcast Satellite) A one-way TV broadcast service from a communications satellite to a small round or oval dish antenna no larger than 20" in diameter. assets. As a result of the sale, News Corporation will refocus its energies and resources in the U.S. on its core content and programming businesses. The Primestar securities to be received in the transaction will be convertible into publicly traded common stock. These securities will remain non-voting, convertible to voting shares Voting Shares Shares that give the stockholder the right to vote on matters of corporate policy making as well as who will compose the members of the board of directors. Notes: Different classes of shares, such as preferred stock, sometimes don't allow for voting rights. only upon a sale of the securities. Primestar is the second largest U.S. direct broadcast satellite service with approximately 1.8 million subscriber homes. Under a separate arrangement, the Primestar partners have agreed to consolidate their DBS assets into a new venture. The transaction is subject to approvals of federal regulatory agencies. Primestar and Tempo Satellite have agreed to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose their rights in the license to operate 11 transponder channels at the 119 West Longitude orbital slot. Concurrently, ASkyB has agreed to sell its Gilbert, Arizona Gilbert is a town in Maricopa County, Arizona, USA. According to 2006 Census Bureau estimates, the population of the city is 191,517. [1] Although it is large and growing rapidly, Gilbert is still incorporated as a town rather than as a city; it has the highest satellite uplink facility to Tele-Communications, Inc. for a purchase price which represents ASkyB's investment in the facility, plus related interest expense. ASkyB will independently sell two additional satellites which are under construction. CONTACT: Primestar Partners L.P. Inquiries Vincent Duffy, 212-521-5215 or News Corporation Press Inquiries Jim Platt, 212-852-7083 or News Corporation Investor Inquiries Reed Nolte, 212-852-7092 |
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