US satellite television provider Echostar Communications, owner of Dish Network, has agreed to buy Sling Media, makers of the wildly successful Slingbox. Prior to the announcement, Echostar already owned a small stake in the company. If everything goes as planned, after spending another $380 million they'll own the rest.
"EchoStar's acquisition of Sling Media will allow us to offer innovative and convenient ways for our customers to enjoy their programming on more displays and locations, including TVs, computers and mobile phones, both inside and outside of the home," said Charlie Ergen, CEO and co-founder of EchoStar, in a statement.
The statement continues "As an early investor in Sling Media, EchoStar has been pleased with the progress and commitment the company has made establishing Sling Media and the Slingbox as powerful and beloved digital media brands,"
Once the purchase is complete, Echostar may end up dividing into two distinct companies. One would consist of Dish Network and related operations, while the other would concentrate on consumer electronics manufacturing, with a particular emphasis on set-top boxes. Company officials believe the split would make both companies more attractive to investors, especially considering that some of the goals of one operation would likely be at odds with the other.
This move is certainly different from what we've seen many companies in the television business do, because they're buying an established and successful company instead of trying to invent the next big thing themselves.
No amount of money will guarantee innovative ideas, but paying for the ideas after they've become proven money makers might be the next best thing. More importantly, it may give companies like Echostar an advantage in a world where other companies are trying to fine tune their business models to accomplish what the Sling Media already has.
Sources:
Reuters
Associated Press
TechNewsWorld
The statement continues "As an early investor in Sling Media, EchoStar has been pleased with the progress and commitment the company has made establishing Sling Media and the Slingbox as powerful and beloved digital media brands,"
Once the purchase is complete, Echostar may end up dividing into two distinct companies. One would consist of Dish Network and related operations, while the other would concentrate on consumer electronics manufacturing, with a particular emphasis on set-top boxes. Company officials believe the split would make both companies more attractive to investors, especially considering that some of the goals of one operation would likely be at odds with the other.
This move is certainly different from what we've seen many companies in the television business do, because they're buying an established and successful company instead of trying to invent the next big thing themselves.
No amount of money will guarantee innovative ideas, but paying for the ideas after they've become proven money makers might be the next best thing. More importantly, it may give companies like Echostar an advantage in a world where other companies are trying to fine tune their business models to accomplish what the Sling Media already has.
Sources:
Reuters
Associated Press
TechNewsWorld
