PanAmSat Signs $250 Million Deal With AOL Time Warner Divisions

PanAmSat

(SPOT) - Get Report

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.

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.