SJI NewsWire-- (05/27/97) According to the Wall Street Journal, Rupert
Murdoch was busy while Americans were celebrating this Memorial weekend. It
appears a tentative accord to join PrimeStar Partners and ASkyB will be
signed this week.
There are a number hurdles to go including what to do with those PrimeStar
dishes and receivers and which orbital location to use. Technically, it
would be better for PrimeStar/ASkyB to use the orbital slot of ASkyB, sell
the PrimeStar slot and replace the hardware currently used by PrimeStar.
If an agreement is signed, here's what would likely happen. PrimeStar would
be folded into the recently spun-off TSAT and then ASkyB would be merged..
That would give Murdoch a 30% share of the new company.
Time will tell what will happen with the law suit filed by EchoStar, but if
a Prime/Sky deal is signed the PrimeStar Partners will expect to be
imdemnified from any lawsuits. EchoStar and others in the industry will no
doubt be asking for government agencies to look into any deal that is
(c) Satellite Journal Itl. 1997
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