spacetoday.net: Hughes considering merging PanAmSat with Hughes Network Systems

Updated: Thu, Jan 23, 2003, 7:27 AM ET (1227 GMT)
Originally Posted: Wed, Jan 22, 2003, 1:54 PM ET (1854 GMT)
The Wall Street Journal reported Wednesday that Hughes Electronics may keep satellite operator PanAmSat and merge it with another unit, Hughes Network Systems (HNS). Hughes' parent, General Motors, is in the process of finding a buyer for Hughes' DirecTV unit, and had previously considering selling its majority stake in PanAmSat along with DirecTV. However, the Journal reported that instead Hughes may keep PanAmSat and merge it with HNS, the developer of the Spaceway broadband satellite system. The merger would allow PanAmSat's large, dependable cash flow to help support Spaceway and other emerging products at HNS. Hughes officials told Reuters on Wednesday that they had no plans to merge the two companies, but that Hughes is "always reviewing its options." Space News reported last week that PanAmSat was planning to acquire another Hughes subsidiary, Hughes Global Services (HGS), which deals primarily with government customers. The deal, expected to close next month, would give PanAmSat the opportunity to do more business with the US federal government.