[09-26-07 – Satellite Today] The board of EchoStar Communications Corp. has directed the company’s management to look at separating its businesses into two distinct publicly traded companies, EchoStar announced Sept. 25.

Under the proposed plan, EchoStar’s Dish Network service would be split from the company’s technology and infrastructure assets that include the set-top box design and manufacturing business, assets used to provide fixed satellite services to third parties and international operations. The technology company would include EchoStar’s satellites, uplink centers and spectrum licenses not considered core to Dish Network’s subscriber business.

“We believe separation of our consumer-based and wholesale businesses could unlock additional value,” Charlie Ergen, EchoStar’s chairman and CEO, said in a statement. “Each company would be able to separately pursue the strategies that best suit its respective long-term interests. The spin-off transaction would also allow employee incentives to be tied to their respective company’s performance and improve opportunities to effectively develop and finance expansion plans.”

The spin-off would be a tax-free transaction and EchoStar shareholders would have separate pro rata ownership interests in each company. Ergen would continue to serve as chairman and CEO of Dish Network and the spin-off company.

Separately, EchoStar has agreed to acquire Sling Media Inc., a privately held company that created the Slingbox, a streaming device that enables consumers to view programming from a computer with a broadband connection.

EchoStar will pay about $380 million for Sling Media, and the transaction is expected to close before the end of the year.