The acquisition of PanAmSat by Intelsat for a price tag of $6.4 billion has been completed, leaving PanAmSat a wholly-owned subsidiary. The resulting company will carry approximately 25% of the world’s commercial satellite-delivered TV programming and can reach 99 percent of the globe’s populated areas via its 51 satellites, eight teleports and 40,000 miles of fiber.
The Washington Post reports that the combined company will lose money, though, as PanAmSat earned $72.7 million, versus the $325 million Intelsat lost. The company borrowed heavily to finance the transaction.
Chief Executive David McGlade of Intelsat stated to the paper that he doesn’t expect the company to be profitable in the near future, thanks to interest payments and accumulated debts, but that investors are happy with Intelsat’s backlog of orders and cash flow. Also, the combined company has more diversity and a worldwide reach, moving away from Intelsat’s traditional market of telecommunications.
CATEGORIES
