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DirecTV, Pegasus Agree to Sale

Aug 2, 2004  •  Post A Comment

Satellite operators DirecTV Group and Pegasus Communications settled their years-long legal battle today, with DirecTV agreeing to buy Pegasus’ satellite operations for $875 million in cash and the two companies dismissing their respective legal claims.

Such a sale between DirecTV and Pegasus was widely expected among satellite observers, who felt Pegasus was running out of options-particularly when DirecTV voided its reseller’s agreement with Pegasus and other satellite resellers a few months ago.

As part of the sale, the two companies agreed to end their legal fight over allegations of breach of contract, and DirecTV agreed not to seek a $63 million judgment against the Pegasus Satellite Television unit.

Pegasus Satellite, which filed for bankruptcy protection earlier this year, has received creditor approval for the sale, which is expected to close within the next four to six weeks.