EL SEGUNO, Calif., Aug. 2 (UPI) -- DirecTV Group of El Seguno, Calif., Monday acquired the primary direct broadcast-satellite assets of Pegasus Communications satellite-television unit.
The $875 million cash deal includes the rights to all DirecTV subscribers activated through Pegasus.
DirecTV, a satellite-to-home broadcaster, said the payment reflects full satisfaction and the dismissal of all claims between the two companies, including the $63 million judgment entered in May in favor of DirecTV against Pegasus. Including that judgment, the total purchase price is about $938 million.
Pegasus Satellite Television, which filed for Chapter 11 bankruptcy protection in June shortly after DirecTV abruptly terminated a distribution deal with the company, is the nation's largest independent provider of DirecTV service. It delivers DirecTV to more than 8.4 million homes in 41 states and serves 1.08 million rural subscribers.
DirecTV said the acquisition agreement has been approved by the creditors' committee in Pegasus' Chapter 11 proceedings. DirecTV expects the deal to close within the next four to six weeks.
