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Vivendi in EchoStar stake
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December 14, 2001: 7:20 a.m. ET
French media firm takes 10% of satellite TV provider for $1.5B.
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NEW YORK (CNN/Money) - In its continued search for outlets in the United States, French media firm Vivendi S.A. agreed to take a 10 percent stake in satellite television provider EchoStar Communications for $1.5 billion.
An investment in EchoStar (DISH: Research, Estimates) is an indication Vivendi believes EchoStar will receive regulatory approval for its previously reported $26 billion purchase of the No. 1 U.S. satellite television firm, Hughes Electronics.
If approved, the Hughes transaction would give EchoStar access to about 15 million households.
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Under the investment agreement, Vivendi will have 15 distribution channels in the EchoStar system, which may fit well with its other proposed transaction with USA Networks.
Vivendi is in talks to purchase control of USA Network's entertainment assets, including film and television studios that can potentially be used to produce content for EchoStar, as well as USA's Sci-Fi and USA cable channels.
Vivendi (V: Research, Estimates) shares fell $3.07 to close at $48.53 Thursday. EchoStar rose $1.23 to $27.13 in before-hours trading Friday. 
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