EchoStar, Vivendi Unit GVT Plan To Form Brazilian Pay TV Joint Venture

(RTTNews) - EchoStar Corp. (SATS), a provider of satellite operations and video delivery solutions, along with French media giant Vivendi SA (VIV.L, VIVEF.PK), announced Tuesday that they plan to create a joint venture for pay TV services in Brazil.

EchoStar Technologies LLC and Vivendi subsidiary GVT, an alternative telecommunications operator in Brazil, have entered into negotiations regarding the formation of the JV, the company said.

EchoStar said the companies aim to position their future joint venture as a leader in the fast growing Brazilian pay TV market.

It is expected that the Brazilian pay TV market would be benefited from the expected higher demand driven by two key global events to be held in the country: FIFA World Cup in 2014 and Olympic Games in 2016.

The joint venture would be headquartered in Brazil, managed by GVT, and would benefit from GVT´s strong market position and state-of-the-art IP network. This would be combined with EchoStar´s expertise in satellite and video technology and its Brazilian licenses.

The deal is subject to execution of definitive agreements and all corporate and governmental approvals.