SkyTerra Gets FCC Merger OK

SkyTerra has received approval from the International Bureau of the FCC for the transfer of control of the company to Harbinger

March 27, 2010

1 Min Read

RESTON, Va. -- SkyTerra (OTCBB: SKYT) today received approval from the International Bureau of the Federal Communications Commission (FCC) for the transfer of control of the company to Harbinger.

The previously announced merger agreement between SkyTerra and Harbinger calls for SkyTerra to be acquired by a new corporation formed and indirectly wholly-owned by Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situations Fund, L.P. At a Special Meeting of Stockholders on March 22, 2010, SkyTerra stockholders overwhelmingly voted to approve the merger agreement with Harbinger.

With both FCC and stockholder approvals now complete, the transaction is expected to close as soon as practicable following the satisfaction of all the conditions to closing.

On a separate item, the FCC’s International Bureau also granted SkyTerra’s application for a modification of certain terms of its ancillary terrestrial component (ATC) authorization. This approval allows SkyTerra to implement its Cooperative Agreement with Inmarsat and deploy a robust terrestrial mobile broadband network, which will be integrated with SkyTerra’s satellite network.

“We’re very encouraged that the FCC has already started to realize the promise of its Broadband Plan,” said Alexander H. Good, chairman, chief executive officer and president of SkyTerra. “The FCC said in the Broadband Plan that it wanted to accelerate efforts to make L-band usable for broadband ATC service. These two orders do exactly that. Approving the transfer of control brings Harbinger’s resources and demonstrated operational commitment to our ATC vision. Approving our modification request makes it possible for us to provide a full measure of spectrum for mobile broadband. We at SkyTerra commend the staff for its diligence, thoughtfulness and professionalism, and Chairman Genachowski for his leadership on this issue.”

SkyTerra Communications (Nasdaq: SKYT)

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