FCC

DirecTV’s PanAmSat Sale OK with FCC

8/12/2004 5:42 AM Eastern

The Federal Communications Commission Wednesday approved DirecTV Group Inc.’s sale of PanAmSat Corp.

The satellite company is being sold to affiliates of Kohlberg Kravis Roberts & Co. L.P., The Carlyle Group and Providence Equity Partners Inc. for approximately $2.6 billion.

DirecTV also announced Thursday that it has reached an agreement with PanAmSat’s buyers to compensate for the xenon-ion-propulsion failure of PanAmSat satellite Galaxy 10R, which was announced last week, and other issues.

The agreement shaved $200 million off the original purchase price, but it did not affect the $23.50-per-share purchase price being paid to other PanAmSat shareholders.

“All of the pieces are in place to close the transactions next week," DirecTV Group CEO Chase Carey said in a prepared statement. "This transaction continues to be a good value for our shareholders and enables us to take one more step toward our goal of focusing resources and management time on our core DirecTV business."

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