FTC OK With Thomson/HNS/DirecTV Deal

[Chris Blount]

The Federal Trade Commission granted early termination of its waiting period under antitrust laws for Thomson's acquisition of Hughes Network Systems' set-top box manufacturing business, a deal the consumer electronics giant struck with HNS parent DirecTV last month.

Under the deal, DirecTV will receive from Thomson $250 million in cash, plus potential incentives for DirecTV of up to $150 million. Also, Thomson will become the lead supplier of DirecTV set-top receivers, accounting for half of the satellite TV company's needs, the companies said.

DirecTV has been eyeing the sale of non-core assets. In addition to the Thomson/HNS deal, DirecTV is selling its stake in PanAmSat to a group of investors led by Kohlberg Kravis and Roberts. (See story: http://www.skyreport.com/viewskyreport.cfm?ReleaseID=1402)

http://www.skyreport.com (Used with permission)

[tahoerob]

All I have to say is that any RCA/Thomson product that I have every owned was CRAP!!

May not be a good move for D*

[Tusk]

The only RCA product I have ever owned is a 27" TV I bought in 1993. It's still going strong and works great. I don't remember what I paid for it at the time, but I think you can get a 27" TV with the purchase of a large pizza these days. :D

[Flyboy917]

Does this mean Third party...i.e. Sony, Samsung, Phillips, etc will no longer be producing boxes? Gees...hope they don't pull a E* maneuver and ruin a good thing.

[Greg Bimson]

It appears there are two different STB manufacturers now: the former Hughes Network Systems now owned by Thomson, and the group that makes the Samsung series.