Cable Operators

DirecTV, Thomson Extend Set-Top Pact

5/12/2004 5:52 AM Eastern

DirecTV Inc. signed a new five-year set-top-box deal with Thomson Consumer Electronics that includes Thomson buying Hughes Network Systems' set-top-manufacturing assets for $250 million.

Thomson said it will help DirecTV to build new set-tops, including HDTV and digital-video-recorder boxes.

The pact also provides incentives to DirecTV based on revenues and set-top order volume to Thomson over the five-year period that could increase the amount paid by Thomson to as much as $400 million, the companies said.


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