AT&T AND DIRECTV, INC. ANNOUNCE STRATEGIC PARTNERSHIP.NEW YORK/LOS ANGELES--(BUSINESS WIRE)--Jan. 22, 1996--DIRECTV, Inc. and AT&T announced today a broad and exclusive agreement for AT&T to market and distribute the DIRECTV high-power direct broadcast satellite (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. ) service and DSS (1) (Digital Signature Standard) A National Security Administration standard for authenticating an electronic message. See RSA and digital signature. (2) (Digital Satellite S equipment. AT&T plans to begin offering the service and equipment to its 90 million customers by mid-summer. AT&T also is acquiring an equity interest in DIRECTV. DIRECTV, a unit of Hughes Electronics Corporation, is the world's leading provider of DBS service, delivering up to 175 channels of digital entertainment -- including a wide array of sports, movies and news programming -- to owners of the DSS system, which features an 18-inch satellite dish satellite dish n. A dish antenna used to receive and transmit signals relayed by satellite. satellite dish A parabolic antenna used to receive signals relayed by satellite. . As part of the broad agreement, AT&T is acquiring 2.5 percent of the equity in DIRECTV from Hughes for $137.5 million. AT&T has options to increase its investment to up to 30 percent over five years depending primarily on the number of new DIRECTV subscribers AT&T enrolls over specific time periods. These options are priced to recognize AT&T's contribution to the increased value of DIRECTV, and reflect discounts to future fair market value. The long-term strategic partnership opens a significant base of potential customers for DIRECTV and provides AT&T with a unique and innovative home-entertainment service to offer its customers. AT&T will be the only nationwide telecommunications company See telecom company. to market and distribute the DIRECTV programming service and the DSS system. The alliance with AT&T will provide DIRECTV with a powerful marketing and distribution channel to complement the more than 20,000 retail outlets retail outlet n → punto de venta retail outlet n → point m de vente retail outlet retail n → nationwide that will continue to sell DSS equipment and DIRECTV programming. Under this landmark agreement, AT&T, the nation's leading telecommunications company, and DIRECTV, the direct- to-home satellite market leader, join forces to provide customers with advanced digital entertainment and communications services. AT&T and DIRECTV also plan to jointly develop new multi- media services for DIRECTV as part of the agreement. "This bold agreement will bring consumers nationwide a premier package of communication and digital entertainment services," said Eddy Hartenstein, president of DIRECTV. "This strategic alliance with AT&T will augment our more than 20,000 existing consumer electronics retailers and satellite dealers nationwide, and provide even more consumers with access to the fastest-growing, direct-to-home satellite service in the nation." Joseph P. Nacchio, executive vice president of AT&T's consumer-small business division, said, "Our customers count on AT&T to put leading-edge communications, information and entertainment services comfortably within their reach. The exceptional quality, convenience and flexibility of DIRECTV's entertainment and information services See Information Systems. make them a natural match for AT&T's world-class services." The agreement announced today is subject to the completion of definitive contracts and certain regulatory approvals. AT&T (NYSE NYSE See: New York Stock Exchange :T) provides communications services and products, as well as network equipment and computer systems to businesses, consumers, communications services providers and government agencies. To meet consumers' preferences for a comprehensive selection of communications, information and entertainment services, AT&T recently has added cellular, paging and on-line services to its portfolio. The AT&T home page on the World Wide Web may be contacted at http://www.att.com. DIRECTV and DSS are registered trademarks of DIRECTV, Inc., a unit of Hughes Electronics Corporation. The earnings of Hughes Electronics are used to calculate the earnings per share attributable to GMH GMH General Motors Holden's (NYSE symbol) common stock. Visit DIRECTV on the World Wide Web at http://www.directv.com. Editor's Note Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat. Trained by D. : AT&T and DIRECTV will hold an audio news briefing at 10 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy today, January 22. The briefing will be hosted by Joe Nacchio, AT&T executive vice president, and Eddy Hartenstein, President-DIRECTV. The call-in number is 1-800-260-0719. We will replay the briefing beginning at 2 p.m. EST for 24 hours Adv. 1. for 24 hours - without stopping; "she worked around the clock" around the clock, round the clock . To listen to the rebroadcast call 1-800-475-6701 and dial access code 105100. CONTACT: Adele Ambrose, AT&T office, 908-221-6900 home, 908-221-0238 or Linda Brill Brill or Bril, Flemish painters, brothers. Mattys Brill (mä`tīs), 1550–83, went to Rome early in his career and executed frescoes for Gregory XIII in the Vatican. , DIRECTV office, 310-535-5062 home, 310-544-0305 |
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