Pegasus Agrees to Acquire Golden Sky

Pegasus Communications Corp., the largest reseller of DirecTV satellite television service in small U.S. towns, agreed to buy closely held Golden Sky Holdings Inc. for $627 million in stock to add 345,000 customers. Kansas City, Mo.-based Golden Sky has rights to sell DirecTV in 50 markets, mostly in the Midwest and Southwest. The new company would have more than 1.1 million subscribers in 41 states. Analysts said the deal makes Pegasus an even more attractive takeover target for El Segundo-based Hughes Electronics Corp., parent of DirecTV.

Bala Cynwyd, Pa.-based Pegasus also said it filed a lawsuit charging DirecTV, the nation’s largest satellite television broadcaster, with breach of contract for marketing some premium channels directly to rural customers instead of through its affiliates. The National Rural Telecommunications Cooperative, a not-for-profit group, had filed a similar suit in June.

Pegasus shares jumped $9.38 to close at $106.63 on Nasdaq. The shares have more than quadrupled in the last 12 months.