EchoStar Communications (NDAQ:DISH) shares jumped $2.77, or 6.7%, to $44.09 in afternoon trading after the television provider announced that it would be acquiring Sling Media and may spinoff its technology and infrastructure assets, according to a press release.

EchoStar issued a statement Monday night indicating that it had agreed to purchase Sling Media - which it already owns a stake in - for $380 million in cash and stock options. This will enable the company to offer the Slingbox system to its consumers, which enables users to watch and control home TV with a portable device such as a PDA or laptop.

The company also indicated that it is considering spinning off its technology and infrastructure assets. The spin-off assets would include, among other things, EchoStar's award-winning set top box design and manufacturing business, its international operations, and assets used to provide fixed satellite services to third parties, together with satellites, uplink centers and spectrum licenses not considered core to DISH Network's subscriber business.

"We believe separation of our consumer-based and wholesale businesses could unlock additional value. Each company would be able to separately pursue the strategies that best suit its respective long-term interests. The spin-off transaction would also allow employee incentives to be tied to their respective company's performance, and improve opportunities to effectively develop and finance expansion plans," said Charlie Ergen, Chairman and Chief Executive Officer of EchoStar.

Investors should carefully watch for a 10-12B filing with the SEC that would detail any potential spinoff as it often represents a great opportunity to profit. Meanwhile, the acquisition of Sling Media should provide the company with an innovative new product that can help it differentiate itself in an increasingly competitive market. Combined, these events are great news for shareholders and investors.

In the end, this is great news for shareholders who have been waiting for an event to unlock value in shares that have dropped over 10 percent from their 2007 highs. Combined, these factors make DISH a stock worth watching!

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