Satellite

EchoStar-Gemstar Deal Done

4/06/2004 10:17 AM Eastern

EchoStar Communications Corp.’s purchase of Superstar/Netlink Group LLC, UVTV distribution and related assets from Gemstar-TV Guide International Inc. has been completed, the companies announced Tuesday.

With the close of this transaction, the patent-licensing, program-carriage and litigation-settlement agreements between Gemstar and EchoStar, first announced March 2, became effective.

Under terms of the March deal, EchoStar will make a $190 million one-time payment to use Gemstar-TV Guide's intellectual property and technology, along with the TV Guide brand on its interactive programming guides.

Also, TV Guide Channel will launch on EchoStar’s Dish Network direct-broadcast satellite service, and the two companies’ existing distribution agreement for horse-racing channel TVG Network will be extended. TV Guide Channel will become part of Dish’s most widely distributed programming package, "America's Top 60."

EchoStar paid approximately $48 million in cash for the Gemstar-TV Guide assets.

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