Thompson said it will develop and manufacture digital satellite set-top boxes for DIRECTV Group and serve as DIRECTV's lead supplier for the next five years.
As part of the transaction announced Wednesday (May 12), Thomson agreed to pay DIRECTV at least $250 million in cash upfront for securing a long-term relationship and a minimum amount of business from DIRECTV. The payment also covers acquisition of set-top box manufacturing assets owned by DIRECTV’s subsidiary, Hughes Network Systems, Inc.
Thomson said will be involved in technology development for new set-top box models, and will manufacture a range of receivers including DIRECTV-brand high definition and digital video recorder receivers. Thomson will supply half of DIRECTV’s set tops.
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