SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 25, 1995
COMSAT Corporation
(Exact name of Registrant as specified in Charter)
District of Columbia 1-4929 52-0781863
(State or other juris- (Commission (IRS Employer
diction of incorporation) File Number) Identification
Number)
6560 Rock Spring Drive, Bethesda, MD 20817
(Address of principal executive offices) Zip Code
Registrant's telephone number, including area code (301) 214-3000
Not applicable.
(Former name or former address, if changed since last report).
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Item 5. Other Events
Attached to this report as Exhibit 20, and incorporated by
reference in this item, is a Press Release of the Corporation,
distributed on May 25, 1995, describing an agreement pursuant to
which COMSAT Entertainment Group, Inc., a wholly-owned subsidiary
of the Corporation, would purchase the Quebec Nordiques National
Hockey League franchise and move it to Denver, Colorado.
Item 7. Financial Statements and Exhibits
(c) Exhibits (listed according to the number assigned in
Item 601 of Regulation S-K).
Exhibit No. Description
20 Press Release dated May 25, 1995.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
COMSAT Corporation
/s/Allen E. Flower
By:
Allen E. Flower
Acting Chief Financial Officer
and Controller
Date: May 30, 1995
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EXHIBIT INDEX
Exhibit No. Description Page
20 Press Release dated May 25, 1995. 5
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Exhibit 20
COMSAT Entertainment Group FROM: COMSAT Entertainment Group
NEW RELEASE 6560 Rock Spring Drive
Bethesda, MD 20817
PHONE: 301 214 3731
FAX: 301 214 7123
DATE: May 25, 1995
COMSAT BUYS NHL FRANCHISE
Quebec Nordiques Move to Denver
BETHESDA, Md. COMSAT Entertainment Group, a business unit of COMSAT
Corporation (NYSE:CQ), has signed an agreement with owners of the Quebec
Nordiques National Hockey League (NHL) franchise to buy the team for
approximately $75 million.
COMSAT will transfer the franchise to Denver, Colorado in time for the
1995-96 NHL season. COMSAT Entertainment Group, formerly known as COMSAT
Video Enterprises, already owns and operates the Denver Nuggets National
Basketball Association franchise. The company plans to build, in
partnership with The Anschutz Corporation, a new $132-million arena that
will be called The Pepsi Center pursuant to a naming rights agreement with
the Pepsi-Cola Company.
The NHL will play at McNichols Arena until the Pepsi Center's proposed
opening for the 1997-98 season. A news conference will be held in Denver
within a few weeks to introduce key members of the hockey organization to
the community.
Season ticket deposits will be taken immediately by calling (303) 575-
1900. Denver Grizzlies and Denver Nuggets season ticket holders will
receive special priority in the NHL seating process.
The Nordiques joined the NHL in 1979 and finished the 1994-95 season with
the second-best record in the league. They were eliminated by the
defending Stanley Cup champion New York Rangers in the first round of this
year's Stanley Cup Playoffs.
Negotiations for the purchase of the Nordiques were concluded at COMSAT's
Bethesda headquarters Wednesday afternoon and approved by the company's
Board of Directors on Thursday morning. The transaction and transfer fees,
if any, are subject to approval by the NHL Board of Governors.
"This transaction is another step in our strategic plan to strengthen our
successful entertainment business with properties that add value and
enlarge our portfolio of entertainment programming," said Bruce L.
Crockett, president and CEO of COMSAT Corporation. "With the NBA Denver
Nuggets a success and the planned Pepsi Center in the works, adding the NHL
to the mix fulfills our objective of expanding both the scope and quality
of our sports and entertainment operations in the Rocky Mountain region."
(more)
COMSAT and [orb] are the registered trademark of COMSAT Corporation
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COMSAT Entertainment Group - Nordiques
May 25, 1995 - Page 2
In keeping with the entertainment industry trend of forming strategic
alliances, Crockett said, "We are exploring partnership opportunities that
would bring strategic value to our entertainment businesses."
"We intend to make Denver the sports and entertainment hub for the 10-
state Rocky Mountain region," said Charlie Lyons, president of COMSAT
Entertainment Group. "With a revitalized Nuggets organization, the Pepsi
Center, our interests in television production and a theme park, we're well
on the way to achieving our goal. And now we have NHL hockey. Let's face
it, this is a hot team . . . and they're young! They will bring a new
level of competitive spirit and a winning tradition to the organization."
The investment banking firm of Allen & Company served as financial
adviser to COMSAT for the transaction.
COMSAT Entertainment Group is a subsidiary of COMSAT Corporation, a
global provider of communications and entertainment products and services.
A full-service entertainment company, COMSAT Entertainment Group (CEG)
produces major theatrical filmed and television entertainment through
Beacon Communications, and is a major supplier of motion pictures to
Columbia and TriStar Pictures. CEG produces live television sports, owns
and operates the NBA Denver Nuggets, manages arena and theme park
interests, provides on-demand information and entertainment to hotels,
distributes the NBC television network, installs and maintains turnkey
communications networks and provides video conferencing facilities.
# # #
Contact:
News Media: Financial Community:
Paul Jacobson Mike Troiano
COMSAT Entertainment Group COMSAT Corporation
301.214.3731 301.214.3244
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