PanAmSat Signs $250 Million Deal With AOL Time Warner Divisions
PanAmSat
(SPOT)
signed a $250 million deal with three divisions of
AOL Time Warner
(AOL)
to deliver television programs.
The Greenwich, Conn., communications satellite operator, which has 20 satellites in orbit, extended its current relationship with
HBO
and
Turner Broadcasting System
through a 10-year deal to beam programs on its next-generation satellites beginning in 2005. PanAmSat's new satellites will also enable HBO and TBS to continue introducing new and advanced digital applications, such as video-on-demand, streaming media and other Internet services.
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PanAmSat will supply
Warner Bros.
with its latest satellite technology and services, delivering programming digitally for the WB Television Network and the company's domestic television distribution services. PanAmSat, which began full-time digital transmissions last year, also said it plans to complete its conversion to digital transmissions by the end of the first quarter.
Separately, PanAmSat said it formed a joint venture with an affiliate of
Grupo Pegaso
, a Mexican cell phone company, to provide Internet and satellite services in Mexico. Financial details weren't disclosed.
Shares of PanAmSat lately gained 56 cents, or 1.4%, to $40 on the
Nasdaq
, while AOL Time Warner traded up $2.40, or 5.5%, to $45.70 in
New York Stock Exchange
trading.
