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GE Americom Announces Plan to Achieve Global Connectivity Through the Acquisition of Columbia Communications
PRINCETON, NJ, October 1, 1999
GE American Communications, Inc. (GE Americom) announced today that GE Americom and Columbia Communications Corporation (Columbia) have reached an agreement in principle regarding the acquisition of Columbia by GE Americom. The acquisition, which is subject to regulatory approval by the Federal Communication Commission (FCC), adds transoceanic capacity to GE Americom's fleet, globally connecting its satellites delivering service in the Americas, Europe, and with the soon-to-be-launched GE-1A, Asia. Terms of the agreement were not disclosed.
John F. Connelly, GE Americom's Chairman and CEO says "The strategic value of this expansion can not be overestimated. We will become the only global satellite fleet operator providing both prime regional and intercontinental services." He continued "With this acquisition, we become the premier one-stop-shop for our customers who are rapidly extending the reach of their programming and diversifying their services. GE Americom will be positioned to deliver high value, end-to-end telecommunications solutions to any place in the world."
Clifford Laughton, Columbia's Chairman and CEO says "Columbia is a great acquisition for Americom; our orbital assets are totally complementary to theirs. Americom is in the best position to fully realize the potential of our orbital locations and merge that capacity into a robust fleet to benefit customers around the world."
Columbia's three satellites carry television and news programming, data, Internet services and telephony services among the African, Asian, European, North and South American continents. Upon FCC approval of the transaction, GE Americom will begin construction of two additional satellites, one with Atlantic Ocean Region (AOR) and one with Pacific Ocean Region (POR) coverage. GE Americom's AOR expansion will support Internet backbone access and other services and meet the growth and connectivity requirements of its large media customers. Service will focus on traffic between North America and Latin America, between Europe and Latin America and between North America and Africa. The POR expansion will serve growing demand for US-based programming throughout the Pacific Rim and the need to transport Internet content into, within and out of the region.
GE Americom currently operates twelve satellites providing services to North America. In addition, GE-1E provides service for European and Middle Eastern markets. With the late 1999 launch of GE-4 and through NahuelSAt, an Argentine satellite operator, GE Americom provides satellite-based communications services throughout South and Latin America. And with the launch of GE-1A, scheduled for first quarter 2000, GE Americom will be able to deliver services into China, India and the large population centers of Northeast Asia. GE Americom's key customers include ABC Radio Networks, AT&T Alascom, the BBC, British Telecom, Deutsche Welle, Discovery, Disney, Gannett, ICG, Merlin, NBC, the New York Times, NHK, PaxNet, PBS, SkyCache, TELE Greenland, TV Europa, Viacom and TimeWarner/Turner Broadcasting.
GE Capital, with assets of more than US$300 billion, is a global, diversified financial services company with 28 specialized businesses. A wholly-owned subsidiary of General Electric Company, GE Capital, based in Stamford, CT, provides equipment management, mid-market and specialized financing, specialty insurance and a variety of consumer services, such as car leasing, home mortgages and credit cards, to businesses and individuals around the world. GE is a diversified services, technology and manufacturing company with operations worldwide.
Contact: Monica Morgan
609-987-4143
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