Liberty Satellite said Wed. it had signed agreement with Lockheed...
Liberty Satellite said Wed. it had signed agreement with Lockheed Martin, TRW and Telespazio to bail out fledgling satellite Internet company Astrolink. Last Oct., Lockheed Martin said it wouldn’t provide any more funding for Astrolink project after it had…
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failed to raise $3.7 billion of $5 billion needed for satellite broadband network (CD Nov 1 p3) that was created in 1999. Move by Liberty apparently is “last-ditch effort” to keep Astrolink running, industry official said. Liberty owns 31.5% of Astrolink, with rest held by subsidiaries of Lockheed, TRW and Telespazio. Under terms of nonbinding letter of intent, Liberty will acquire Astrolink stock after settling claims with other stockholders. Liberty Media will make undisclosed cash infusion in Astrolink in exchange for undisclosed number of shares of Liberty Satellite Series B common stock. Parties have agreed not to discuss terms of agreement publicly until transaction closes. FCC must approve deal. Liberty said it planned to develop revised operating plan for new Astrolink system based on current market conditions if agreement closes.