Echostar/DISH Networks announced the acquisition of Sling Media yesterday, maker of the Slingbox. DISH is purchasing Sling Media for $380 million and they expect the deal to close in the fourth quarter. DISH clearly sees this acquisition as a means to create competitive advantage over DirecTV and its cable/IPTV competitors. “With today’s increasingly mobile lifestyle, EchoStar’s acquisition of Sling Media will allow us to offer innovative and convenient ways for our customers to enjoy their programming on more displays and locations, including TVs, computers and mobile phones, both inside and outside of the home. This combination paves the way for the development of a host of new innovative products and services for our subscribers, new digital media consumers and strategic partners,” said Echostar CEO Charlie Ergen.
Sling Media has developed some interesting products. Their value proposition is to allow consumers to view content anywhere and anytime. If DISH is able to integrate these products well, they could have some compelling features and applications to offer. Maybe more importantly, the acquisition of Sling talent into the Echostar fold should lead to more innovation and perhaps additional competitive advantage. Stay tuned.
For more insight, check out this post from Jeremy Toeman’s LIVEdigitally blog.