Vivendi looks at EchoStar

December 14, 2001 Posted: 1220 GMT

NEW YORK (CNN/Money) -- In its continued search for outlets in the United States, French media firm Vivendi S.A. is pursuing a $1 billion investment in satellite television provider EchoStar Communications, according to a published report Friday.

An investment in EchoStar (DISH: Research, Estimates) is an indication Vivendi believes EchoStar will receive regulatory approval for its previously reported $26 billion purchase of the No. 1 U.S. satellite television firm, Hughes Electronics. 

If approved, the Hughes transaction would give EchoStar 90 percent of the satellite television market, according to the Wall Street Journal.

Vivendi is also in talks to purchase control of USA Network's entertainment assets, of which it already controls 41 percent, the paper reported.

USA's assets include film and television studios that can potentially be used to produce content for EchoStar, as well as USA's Sci-Fi and USA cable channels.

The talks with EchoStar and USA Networks are fluid and could still break down, according to the Journal, citing sources familiar with the situation.

Vivendi (V: Research, Estimates) shares fell $3.07 to close at $48.53 Thursday. EchoStar lost 70 cents to $25.90.