Digest: EchoStar spins out; WorldSpace jumps
EmptySpinoff, spinout for EchoStar
Shares of EchoStar Communications fell 14.9% to $32.10 after it completed the spinoff of its set-top box and other businesses Wednesday. EchoStar said the new publicly traded entity that will hold its set-top box business and certain technology and satellite assets, EchoStar Holding Corp., was effective Tuesday. EchoStar Holding common stock trades under the ticker symbol SATS on the Nasdaq. Each shareholder of EchoStar, which changed its name to Dish Network Corp., received 0.2 of a share of the same class of common stock of EchoStar Holding. EchoStar led Wednesday's decliners on The Hollywood Reporter's Showbiz 50 stock index.
WorldSpace jumps on financing
Shares of WorldSpace, an international satellite radio company, rose 26% on Wednesday after it said that it has secured a subordinated financing facility for up to $40 million from Yenura, a company controlled by WorldSpace CEO Noah Samara. The notes will carry interest at 8% per annum and the price at which the notes may be converted into the Company's Class A Common Stock has been set at $4.25 per share. The stock closed Wednesday at $2.11.
Comcast completes Insight deal
Comcast said Wednesday that the cable company has completed a previously announced deal with Insight Communications to divide their Insight Midwest partnership, in which each company held a 50% interest. Comcast paid the partnership about $1.3 billion at closing for its share of the partnership's debt. Now Comcast owns 100% of a cable system that passes 1.2 million homes and serves about 696,000 basic video subscribers. Insight owns 100% of a cable system that passes about 1.3 million homes and has about 665,800 basic video customers.