New York, Feb 27: Satellite television provider EchoStar Communications Corp. on Friday said it made a $600 million offer to buy some of PrimeStar Inc.'s satellite assets, topping an earlier bid by Hughes Electronics Corp.Littleton, Colo.-based EchoStar said it sent a letter to PrimeStar, which is owned by cable companies, offering to buy two high-powered direct broadcast satellites and their orbital space rights for $600 million, including assumed debt.Last month, Hughes, the operator of DirecTV satellite television, offered to buy those PrimeStar assets for assumption of $465 million in debt and $35 million in cash.
Hughes made a separate deal for PrimeStar's subscriber television business which is not part of EchoStar's current offer. The combined value of the Hughes deals with PrimeStar is $1.82 billion.
Hughes officials were unavailable for comment late on Friday afternoon.EchoStar, operator of the 2 million subscriber Dish Network, would use the PrimeStar assets to provide local programming,high-definition television and data services to U.S. Markets it does not already serve.
PrimeStar is owned by TCI Satellite Entertainment Inc.; a partnership between Time Warner Inc. and Advance Publications; MediaOne Group; Comcast Corp.; Cox Communications Inc. and General Electric Co. EchoStar also operates a satellite services unit that provides video, audio and data services to business television customers and other satellite users.
DirecTV's addition of PrimeStar's subscribers would give it seven million, making it the third largest multi-channel provider behind Tele-Communications Inc and Time Warner's cable division.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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