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SOURCE LodgeNet Interactive Corporation
Expanded Relationship Extends Beyond Programming To Include Product Development And Financing Options For Hotels
EL SEGUNDO and SANTA MONICA, Calif. and SIOUX FALLS, S.D., March 12, 2013 /PRNewswire/ -- With its acquisition by private equity firm Colony Capital ("Colony") scheduled to close in less than a month, LodgeNet Interactive Corporation ("LodgeNet") today announced an expanded strategic relationship with DIRECTV that will provide its hospitality and healthcare customers with upgraded products and services, as well as a unique financing program to facilitate upgrades to HDTV service at little or no out-of-pocket capital expense to its customers. Together with DIRECTV's unparalleled programming, marketing and technology capabilities and Colony's extensive hospitality experience and expertise, LodgeNet will materially enhance the value it offers its industry-leading network of over 1.4 million hotel and hospital rooms in the U.S. and Canada.
The expanded relationship will take effect following Colony's acquisition of LodgeNet, expected to be completed in late March, subsequent to LodgeNet emerging from a pre-packaged restructuring process.
"As partners, LodgeNet and DIRECTV will combine their complementary resources to offer customers options not currently available in the hospitality and healthcare markets," said Richard Nanula, a Principal with Colony Capital. "These enhancements will help reestablish hospitality-based TV as the preeminent viewing experience, a distinction it held when the company first introduced pay-per-view and video-on-demand to the marketplace over 20 years ago."
Beyond the financing program, hotels and hospitals will be offered new a la carte programming options, including DIRECTV's exclusive NFL Sunday Ticket and other exclusive content, as well as other unique revenue-generating and connectivity options. The partners are also committed to work together to develop an industry leading open architecture technology platform that provides hotels with innovative tools and empowers a superior guest experience for today's technology-savvy travelers.
LodgeNet customers will also soon notice a new user interface, more consistent with that offered by DIRECTV to its residential customers, as well as an expanded level of support provided by DIRECTV's nationwide operational infrastructure and customer support excellence, ranked as superior to cable for 11 years running by ACSI (American Customer Satisfaction Index).
"We look forward to working with LodgeNet and Colony to create an in-room video experience that truly differentiates our hospitality and healthcare partners from their competitors, while significantly growing DIRECTV's commercial business," said Paul Guyardo, Chief Revenue and Marketing Officer for DIRECTV. "This partnership provides yet another opportunity to build a phenomenal experience reflective of the DIRECTV brand."
DIRECTV (NASDAQ: DTV) is one of the world's leading providers of digital television entertainment services delivering a premium video experience through state-of-the-art technology, unmatched programming and industry leading customer service to more than 35 million customers in the U.S. and Latin America. In the U.S., DIRECTV offers its 20 million customers access to more than 185 HD channels and Dolby-Digital® 5.1 theater-quality sound, access to exclusive sports programming such as NFL SUNDAY TICKET™, Emmy- award winning technology and higher customer satisfaction than the leading cable companies for 11 years running. DIRECTV Latin America, through its subsidiaries and affiliated companies in Brazil, Mexico, Argentina, Venezuela, Colombia, and other Latin American countries, leads the pay TV category in technology, programming and service, delivering an unrivaled digital television experience to more than 15 million customers. DIRECTV sports and entertainment properties include three Regional Sports Networks (Northwest, Rocky Mountain and Pittsburgh) as well as a 42 percent interest in Game Show Network. For the most up-to-date information on DIRECTV, please visit www.DIRECTV.com.
LodgeNet Interactive is the leading provider of interactive media and connectivity services to hospitality and healthcare businesses and the consumers they serve. Recently named by Advertising Age as one of the Leading 100 U.S. Media Companies, LodgeNet Interactive serves approximately 1.5 million hotel rooms worldwide in addition to healthcare facilities throughout the United States. The Company's services include: Interactive Television, Broadband and Advertising Media Solutions along with nationwide technical and professional support services. LodgeNet Interactive owns and operates businesses under the industry leading brands: LodgeNet, The Hotel Networks and LodgeNet Healthcare. For more information, please visit www.lodgenet.com.
LodgeNet and the LodgeNet logo are registered trademarks of LodgeNet Interactive Corporation. All rights reserved.
Special Note Regarding Forward-Looking Statements
Certain statements in this press release constitute "forward-looking statements," including, without limitation, statements regarding the Company's investment agreement with the Colony Syndicate and the Company's proposed recapitalization, the Company's ability to continue operations during the pendency of the bankruptcy case, and the effect of actions of the Bankruptcy Court on the Company's assets and operations.
Such forward-looking statements are subject to risks, uncertainties and other factors that could cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the Company's ability to comply with the terms of the investment agreement with the Colony Syndicate, including the conditions to closing, which require, among other things, that the Company maintain a certain minimum amount of liquidity, maintain certain material contracts, and obtain the Bankruptcy Court's approval of its Chapter 11 plan of reorganization; the Company's ability to obtain Bankruptcy Court approval with respect to its motions in the Chapter 11 proceedings; risks associated with third party motions in the Chapter 11 proceedings, which may interfere with the Company's ability to consummate its plan of reorganization; the potential adverse effects of the Chapter 11 proceedings on the Company's business, customer relationships, liquidity or results of operations; continued compliance with conditions for funding under the debtor-in-possession financing facility; the ability to execute the Company's business and restructuring plan to achieve desired cost savings and additional capital to improve liquidity; and other factors detailed, from time to time, in our filings with the Securities and Exchange Commission. For any of the foregoing reasons, our anticipated results may not meet our expectations. These forward-looking statements speak only as of the date of this press release. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
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