The Federal Communications Commission cleared
plan to sell
to a group of private equity firms.
The buyers, led by Kohlberg Kravis Roberts, the Carlyle Group and Providence Equity Partners, also reduced by $200 million the price they'll pay DirecTV for its stake in the satellite venture. DirecTV said it will get $2.6 billion for its 80.4% stake in the Wilton, Conn., company. Public investors will get $23.50 a share, as planned.
The sides agreed to cut the price to resolve disagreements stemming from the xenon ion propulsion failure of Galaxy 10R, a PanAmSat satellite, which was announced last week, along with other issues.
"All the pieces are in place to close the transactions next week," said Chase Carey, CEO of El Segundo, Calif.-based DirecTV. "This transaction continues to be a good value for our shareholders and enables us to take one more step toward our goal of focusing resources and management time on our core DirecTV business."
On Thursday, PanAmSat rose 19 cents to $23.48, and DirecTV dropped 6 cents to $15.38.