Steve Mehs
01-23-03, 04:11 AM
Reports suggested that Hughes Electronics may be ready to combine its PanAmSat and Hughes Network Systems units, but the company later denied it's considering the move.
On Wednesday, the Wall Street Journal reported that Hughes executives were considering a plan that would put Hughes Network Systems, known for its DirecWAY and VSAT business, into PanAmSat, the commercial satellite operator 81-percent controlled by Hughes.
According to the paper, Hughes wanted to use PanAmSat's dependable cash flow to help fund fledgling businesses being developed by HNS, including next-generation satellite broadband system Spaceway. The plan also may have helped Hughes to maximize the selling price for its DirecTV business, according to industry officials quoted by the Journal.
Later in the day, Hughes dismissed the speculation. "No plan is being drafted to merge PanAmSat and Hughes Network Systems. However, Hughes is always reviewing its options," spokesman Richard Dore said.
From SkyReport (http://www.skyreport.com/skyreport/jan2003/012303.shtm#one) (Used with Permission)
On Wednesday, the Wall Street Journal reported that Hughes executives were considering a plan that would put Hughes Network Systems, known for its DirecWAY and VSAT business, into PanAmSat, the commercial satellite operator 81-percent controlled by Hughes.
According to the paper, Hughes wanted to use PanAmSat's dependable cash flow to help fund fledgling businesses being developed by HNS, including next-generation satellite broadband system Spaceway. The plan also may have helped Hughes to maximize the selling price for its DirecTV business, according to industry officials quoted by the Journal.
Later in the day, Hughes dismissed the speculation. "No plan is being drafted to merge PanAmSat and Hughes Network Systems. However, Hughes is always reviewing its options," spokesman Richard Dore said.
From SkyReport (http://www.skyreport.com/skyreport/jan2003/012303.shtm#one) (Used with Permission)