AOL may consider satellite deal
By John Borland and Corey Grice
Staff Writers, CNET News.com
January 22, 1999, 4:00 a.m. PT
Is a high-speed satellite-based Internet deal between DirecTV and America Online in the works?
America Online is aggressively seeking ways to stream its service through high-speed Internet connections, as shown by its recent deals. Now, word has it that AOL's next target may be the heavens, through DirecTV's satellite network.
While officials from both companies refuse to comment on any possible discussions, analysts and people close to the company say it is a logical step for both.
DirecTV already has the technology available for turning its satellite TV service into a high-speed PC data connection, left over from an failed attempt to create a similar service with Microsoft several years ago.
"I'd be surprised if there wasn't some type of deal sooner rather than later between DirecTV and AOL," said Steve Blum, president of Tellus Venture Associates, a satellite consulting firm.
This morning, DirecTV moved to expand its satellite offerings by acquiring the assets and 2.2 million subscribers of Primestar in a deal valued at approximately $1.82 billion. The deal has been rumored for some time.
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