Steve Mehs
03-04-03, 04:19 AM
Hughes Electronics said it will take a $23 million pre-tax charge after terminating a strategic alliance it had with America Online.
In a Securities and Exchange Commission filing released Monday, Hughes said the new agreement will allow its Hughes Network Systems unit to continue providing Internet by satellite services to bundled AOL Broadband subscribers. That will give the companies a chance to transition affected subscribers to an unbundled service.
The agreement also included the termination of agreements related to AOL's purchase of Hughes securities. In January, AOL completed a sale of Hughes shares which it acquired in connection with the strategic alliance.
In addition, Hughes' DirecTV and HNS units and AOL agreed to explore new business relationships in the future, the SEC filing said.
The agreement terminating the strategic alliance is dated Feb. 24. The companies entered into the partnership in June 1999.
From SkyReport (http://www.skyreport.com/skyreport/mar2003/030403.shtm#one) (Used with Permission)
In a Securities and Exchange Commission filing released Monday, Hughes said the new agreement will allow its Hughes Network Systems unit to continue providing Internet by satellite services to bundled AOL Broadband subscribers. That will give the companies a chance to transition affected subscribers to an unbundled service.
The agreement also included the termination of agreements related to AOL's purchase of Hughes securities. In January, AOL completed a sale of Hughes shares which it acquired in connection with the strategic alliance.
In addition, Hughes' DirecTV and HNS units and AOL agreed to explore new business relationships in the future, the SEC filing said.
The agreement terminating the strategic alliance is dated Feb. 24. The companies entered into the partnership in June 1999.
From SkyReport (http://www.skyreport.com/skyreport/mar2003/030403.shtm#one) (Used with Permission)