John Malone’s Liberty Media and Charlie Ergen’s EchoStar Communications have failed in their 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, Intelsat and BC Partners said in a statement Tuesday. 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 Echo Star. Liberty and EchoStar, both based in Douglas County, made a joint bid for Intelsat, according to The Wall Street Journal.
Spokesmen for EchoStar and Liberty declined to comment Tuesday.
Liberty is in the process of acquiring a 38 percent stake in No. 1 satellite-TV provider DirecTV, and EchoStar operates Dish Network, the No. 2 satellite-TV service.
Intelsat operates 51 satellites that distribute video programming for broadcast networks and cable companies. In simple terms, Intelsat is a wholesale satellite-programming provider while Dish and DirecTV are retail providers.
EchoStar and Liberty may have been interested in Intelsat because of the potential cost savings from synergies, said Jimmy Schaffler, senior multichannel TV analyst for the Carmel Group.
“Ultimately, the real significance of the Liberty/EchoStar bid for Intelsat longer term is the idea that these two companies and these two top executives are working together,” Schaffler said. “The main import of that is the eventual merger of DirecTV and Dish Network.”
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 movie channel.
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.
