Pegasus Completes Satellite Sale, Stock Split

Aug 27, 2004  •  Post A Comment

Pegasus Communications concluded its 2-for-1 stock split Friday, the same day the company completed the sale of its satellite television assets to DirecTV Group for $938 million.

The company announced the stock split earlier this month and said it decided to proceed with it to ensure the company remains in compliance with NASDAQ rules requiring a public float of no fewer than 750,000 shares of publicly traded stock.

Before the stock split, Pegasus had around 5.7 million shares of Class A common stock outstanding and 916,000 shares of Class B common stock outstanding. The company’s directors and officers, and stockholders with at least a 10 percent stake in the company, hold around 4.8 million Class A shares, which NASDAQ does not count in its float requirement.

After the split, Pegasus’ public float will rise to around 1.8 million shares.

Meanwhile, the company put the wraps on its sale to DirecTV of subscribers who receive DirecTV service through Pegasus’ reseller’s program. The sale culminates a years-long battle between the two companies over whether DirecTV was free to pursue customers in Pegasus’ territory, which is generally in rural parts of the United States.