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Cablevision to Sell Rainbow Direct Broadcast Satellite and Certain Related Assets to EchoStar for $200 Million
January 20, 2005 7:31 p.m.
BETHPAGE, N.Y.--(BUSINESS WIRE)--Jan. 20, 2005--Cablevision Systems Corporation (NYSE:CVC) today announced that it has entered into a definitive agreement for Rainbow DBS Company LLC to sell its direct broadcast satellite and certain other related assets to a subsidiary of EchoStar Communications Corp. (Nasdaq: DISH) for $200 million in cash.
Under the terms of the agreement, EchoStar will acquire the Rainbow 1 satellite, located at the 61.5 degree W.L. orbital position, as well as FCC licenses to construct, launch and operate DBS services over 11 frequency channels at the 61.5 degree W.L. orbital location. In addition, EchoStar will acquire the contents of Rainbow DBS's ground facility in Black Hawk, S.D. and related assets. The transaction is subject to regulatory approvals.
Cablevision will continue to explore strategic alternatives, including monetization, for its remaining Rainbow DBS related assets, including programming, equipment and spectrum.
VOOM will continue to provide service to its current customers during a transition period