EchoStar buys Sling: $380 million well spent
Posted
Sep 25 2007, 11:33 AM
by
Kim Peterson
Rating:
EchoStar, the satellite company that runs the DISH Network, is buying Sling Media for $380 million. Former Sling VP Jeremy Toeman says the deal is a win-win for both sides, and I agree.
I really didn't get Sling until execs actually demoed the company's signature product, the Slingbox (pictured), for me. The device connects to your TV and then can send the video to a computer over the Internet. The value here is for the traveler. If you're in a Singapore hotel room and you really, really want to catch the premiere of "The Office" on TV, the Slingbox is so worth it. If you're in a U.S. city that isn't showing your hometown baseball team in action, there you go.
Sling Media has been a darling of the tech and venture communities for years, raising about $60 million in financing. But I've wondered how far the company could go with a $130 product. Bigger competitors, like Cisco, are closing in as well.
So from Sling's side, this was a good move and the company got a nice sum of money. In an interview with paidContent, Sling CEO Blake Krikorian said he was about to raise another round before this acquisition. He's hoping to remain operator agnostic, despite the new ownership.
But what about from EchoStar's side? As Toeman points out, EchoStar is in intense competition with DirecTV and the cable companies. If it can properly market the "wow" factor and technological advantages of the Slingbox (not to mention future products already in development), then $380 million is a small price to pay.
As of this posting, EchoStar stock is up about 6 percent on the news. Looks like investors approve.
