Hughes and AOL Plan Internet-Satellite Links


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	DirecTV press release


	Hughes and AOL Plan Internet-Satellite Links By Kenneth Silber Staff Writer posted: 07:13 pm ET 19 July 1999

A recent alliance between Hughes Electronics Corporation (NYSE: GMH) and America Online (NYSE: AOL) highlights a potential convergence of satellite communications and the Internet.

Beginning next year, subscribers to Hughes' satellite-based DirecTV will be able to access AOL through their television sets. In addition, AOL plans to offer its high-speed AOL Plus service via Hughes' DirecPC satellites. The two companies announced their joint effort in late June. Under their agreement, AOL will invest $1.5 billion in Hughes, and the companies will conduct joint marketing efforts.

The alliance is a step toward an envisioned "Internet in the sky," with satellite communications playing a large role in transmitting computer data. The companies also are attempting to capitalize on a possible convergence between computers and television sets. Microsoft has sought to benefit from the latter trend through its WebTV service.

On July 19, AOL's stock price closed at $119. Hughes Electronics closed at $61.125.