EchoStar Eyes Split into 2 Companies

ENGLEWOOD, Colo. — EchoStar Communications Corp. said Tuesday that it may split into two publicly traded companies — one to operate the Dish satellite TV service and the other to focus on technology development.

The news came one day after EchoStar said it would ac quire Sling Media Inc., a privately held video technology company, for $380 million.

Sling’s products include the Sling Box, which allows users to watch television that’s streamed from their homes to a computer or other Internet-connected device. The gadget has caused concerns among some program providers.

EchoStar CEO Charlie Ergen said in a statement that any split in the company wouldn’t affect Dish network’s 13.6 million customers.

Ergen said the separation of the company’s consumer and wholesale technology businesses would allow both to pursue their respective goals and unlock additional value.

Investors embraced the announcement, sending shares of EchoStar up $2.82, or 6.82 percent, to $44.14 on the Nasdaq stock market. The shares have traded between $31.40 and $49.69 over the past year.

Originally published by Staff Reports.

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