John Malone’s Liberty Media and Charlie Ergen’s EchoStar Communications have failed in their joint bid to acquire Intelsat, a satellite-communications provider.
Private equity firm BC Partners has agreed to purchase Pembroke, Bermuda-based Intelsat for $5.03 billion, the companies said in a statement today. BC also will assume $11.4 billion in debt.
London-based BC had reportedly been in a heated bidding war for Intelsat with Liberty and EchoStar.
Liberty and EchoStar, both based in Douglas County, made a joint bid for Intelsat, according to The Wall Street Journal.
Intelsat operates 51 satellites that distribute video programming for broadcast networks and cable companies.
Liberty owns a 38 percent stake in No. 1 satellite-TV provider DirecTV, and EchoStar operates Dish Network, the No. 2 satellite-TV service.
Spokesmen for EchoStar and Liberty declined comment today.
EchoStar and DirecTV executives have previously said they would be willing to share some back-end satellite services, prompting speculation of a merger between the companies.
Ergen, EchoStar’s co-founder and chairman, has said sharing the cost of these services could save both companies millions of dollars.
Malone chairs Liberty, which has a wide array of media holdings, such as the QVC home-shopping network and Starz cable-TV network.
The BC-Intelsat deal is expected to close in six to nine months. BC will own 76 percent of Intelsat, while existing stakeholders in the company will retain 24 percent.
Staff writer Andy Vuong can be reached at 303-954-1209 or avuong@denverpost.com.
