Echostar Communications has purchased the struggling VOOM HDTV satellite service for $200 million in cash.
Cablevisions service, called VOOM has struggled since its creation with only $26,000 subscribers and more than $76 million in lost revenues. The company claims it will continue to provide service to current customers, but there is no word on how the transition to EchoStar Communications will occur.
Under the terms of the agreement, EchoStar Communications will pay $200 million in cash for Cablevision’s HDTV satellite service VOOM, code-named Rainbow 1, as well as a federal licenses to construct and introduce satellite services over 11 frequency channels. EchoStar will also reportedly buy the company’s ground facility in Black Hawk S.D. including all related assets.
Read more at the NY Times
