EchoStar Looking to Split in Two25 Sep, 2007 By: Chris Tribbey
One day after buying Sling Media Inc. for a reported $380 million, EchoStar Communications Corp. has announced it's looking at splitting into two companies, one covering its DISH Network satellite TV services, the other focused completely on new technologies.
According to several news reports, EchoStar has asked the Internal Revenue Service for a ruling on the implications of such a transaction.
“Each company would be able to separately pursue the strategies that best suit its respective long-term interests,” EchoStar CEO Charlie Ergen said in a prepared statement to Multichannel News. “The spin-off transaction would also allow employee incentives to be tied to their respective company's performance, and improve opportunities to effectively develop and finance expansion plans.”