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DIRECTV to Acquire EchoStar’s Video Distribution Business, Including DISH TV and Sling TV

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Will Provide U.S. Consumers with More Flexibility and Better Value in the Highly Competitive Video Industry Currently Dominated by Large Tech Companies and Programmers

DIRECTV Will Be Better Able to Work with Programmers to Deliver to Consumers Smaller Content Packages at Lower Price Points

Combined Company Will Be Better Able to Bring Together Multiple Content Sources in One Easily Accessible Place

Improves EchoStar’s Financial Profile as It Continues to Enhance and Further Deploy Its Nationwide 5G Open RAN Wireless Network

DIRECTV to Host Conference Call Today at 9:30 AM ET

EchoStar to Host Conference Call Today at 8:30 AM ET

EL SEGUNDO, Calif. and ENGLEWOOD, Colo., Sept. 30, 2024 /PRNewswire/ — DIRECTV (the “Company”) and EchoStar (NASDAQ: SATS) today announced that they have entered into a definitive agreement under which DIRECTV will acquire EchoStar’s video distribution business DISH DBS (“DISH”), including DISH TV and Sling TV, through a debt exchange transaction. The combination of DIRECTV and DISH will benefit U.S. video consumers by creating a more robust competitive force in a video industry dominated by streaming services owned by large tech companies and programmers. The transaction will provide consumers with compelling video options while separately improving EchoStar’s financial profile as it continues to enhance and further deploy its nationwide 5G Open RAN wireless network.

“DIRECTV operates in a highly competitive video distribution industry,” said Bill Morrow, Chief Executive Officer, DIRECTV. “With greater scale, we expect a combined DIRECTV and DISH will be better able to work with programmers to realize our vision for the future of TV, which is to aggregate, curate, and distribute content tailored to customers’ interests, and to be better positioned to realize operating efficiencies while creating value for customers through additional investment.”

“This agreement is in the best interests of EchoStar’s customers, shareholders, bondholders, employees, and partners,” said Hamid Akhavan, President and Chief Executive Officer, EchoStar. “With an improved financial profile, we will be better positioned to continue enhancing and deploying our nationwide 5G Open RAN wireless network. This will provide U.S. wireless consumers with more choices and help to drive innovation at a faster pace. We expect DISH and EchoStar bondholders to benefit from two companies with stronger financial profiles and more sustainable capital structures.”

“DIRECTV was founded 30 years ago to give consumers greater choices than incumbent cable companies for video content, and the Company’s acquisition of DISH TV and Sling TV positions it to again provide more choices and better value in an industry currently dominated by large streaming platforms,” said David Trujillo and John Flynn, Partners at TPG. “Our ability to execute these transactions, alongside our proposed acquisition of AT&T’s 70% stake in DIRECTV announced earlier today, exemplifies the unique capabilities of the TPG platform and our experienced sector-focused investment approach as we support DIRECTV’s continued investment in innovating the next generation of video services that benefit consumers.”

Compelling Transaction Benefits

A combination of DIRECTV and DISH will help the new company provide consumers with more choices and better value. The combined video company is expected to:

Have increased scale to incentivize programmers to allow DIRECTV to deliver smaller packages at lower price points.

Be better positioned to bring together multiple content sources in one easily accessible place.

Have an enhanced ability to make the investments required to improve its streaming services.

Improve the viability of the satellite platform by realizing efficiencies of some shared fixed infrastructure and operating expenses.

Continue to provide the broadest array of programming and diverse voices available on pay TV, including local news.

The transaction will also benefit U.S. wireless consumers by allowing EchoStar to focus on enhancing and further deploying its 5G Open RAN cloud-native wireless network. This transaction will:

Alleviate a material portion of EchoStar’s financial constraints.

Free up operational and financial resources that EchoStar can dedicate to its mission of deploying a nationwide facilities-based wireless service to compete with dominant incumbent wireless carriers. 

Benefit consumers by enabling EchoStar (through its Boost Mobile brand) to strengthen its position as the fourth facilities-based carrier in the U.S.

Enable EchoStar to further leverage its satellite assets and experience, including developing innovative direct-to-device (D2D) solutions. 

Highly Competitive Industry

The video distribution industry has undergone a massive transformation and is highly competitive, now dominated by streaming services owned by large tech companies and programmers.

Streaming services owned by large tech companies and programmers now have subscription numbers that far exceed those of pay TV distributors.

Content that was historically the mainstay of traditional pay TV – news, sports, and entertainment – is now available exclusively or first-run on direct-to-consumer streaming services.

The vast majority of consumers who leave satellite video are “cutting the cord” for streaming services – wherever they live. Combined, DIRECTV and DISH have collectively lost 63% of their satellite customers since 2016.

Traditional pay TV penetration in U.S. households is now less than 50%.

Improve Both Companies’ Financial Profiles

The transaction is expected to strengthen the financial profiles of DIRECTV and EchoStar, creating opportunities for additional investment.

Upon transaction close, DIRECTV expects to have a leverage position just over 2.0x, and plans to reduce to under 2.0x within 12 months, consistent with its stated 1.5x – 2.0x financial policy on a pro forma basis. As a result, DIRECTV will have one of the best leverage profiles in the pay TV industry.  

DIRECTV estimates that the combination of DIRECTV and DISH has the potential to generate cost synergies of at least $1 billion per annum. These synergies are expected to be achieved by the third anniversary of closing, assuming the closing is in late 2025.1

The transaction will provide EchoStar with greater financial flexibility by improving its access to capital and reducing overall refinancing needs.At close, EchoStar will have reduced its total consolidated debt (excluding financing leases and other notes payable) by approximately $11.7 billion and reduced its consolidated refinancing needs through 2026 by approximately $6.7 billion (excluding financing leases and other notes payable).

The transaction, in conjunction with the exchange offer announced today (the “Exchange Offer”), will also result in the termination of all Intercompany Obligations between DISH Network and DISH DBS and creates the ability for EchoStar to fully unencumber the 3.45-3.55 GHz spectrum, unlocking incremental strategic and operating flexibility.

Transaction Details

Under the terms of the purchase agreement, DIRECTV will acquire EchoStar’s video distribution business, including DISH TV and Sling TV, in exchange for a nominal consideration of $1 plus the assumption of DISH DBS net debt. DISH Network will also benefit from the releases of a substantial amount of intercompany receivables, including spectrum, but will have contractually limited access to the cash flow generated by its business between signing and closing. DISH DBS and DIRECTV have commenced the Exchange Offer for five different series of DISH DBS notes with a total face value of approximately $9.75 billion, including seeking certain consents from the holders of such notes to facilitate the acquisition. The indentures governing the new DISH DBS notes will provide for an amendment without the consent of holders of the new DISH DBS notes to allow for the mandatory exchange of such notes following receipt of certain regulatory approvals and provided the acquisition has been or will be consummated before the outside date described in the purchase agreement, into a reduced principal amount of DIRECTV debt which will have terms and collateral that mirror DIRECTV’s existing secured debt. Such mandatory exchange is conditioned, amongst other things, on an aggregate reduction in the principal amount of DISH DBS’ notes in such exchange of at least $1.568 billion. If noteholders do not accept the Exchange Offer on terms satisfactory to DIRECTV, including to the extent the above mentioned minimum principal reduction is not achieved, it has the right to terminate the acquisition without closing.

The transaction is subject to various closing conditions, including, but not limited to, a requisite amount of the outstanding DISH DBS notes being tendered into the Exchange Offer, completion of a pre-closing reorganization, and receipt of required regulatory approvals.

In addition, TPG Angelo Gordon and certain of its Co-Investors, as well as DIRECTV, provided $2.5 billion of financing to fully refinance DISH DBS’ November 2024 debt maturity. The proceeds of the funding will be distributed to DISH DBS via a secured intercompany loan to fully repay DISH DBS’ November 2024 debt maturity and for general corporate purposes. The financing can be exchanged or refinanced into DIRECTV debt at the closing of the acquisition.

“We built our business to provide bespoke financing solutions. We are pleased to partner with DIRECTV and DISH DBS on a transaction that is value-enhancing for all stakeholders,” said Ryan Mollett, Partner, and Michael Ginnings, Managing Director, TPG Angelo Gordon.

Leadership and Corporate Governance

Upon closing of this transaction, DIRECTV will be led by a proven management team that reflects the strengths and capabilities of both organizations. DIRECTV will continue to be led by Bill Morrow, DIRECTV’s Chief Executive Officer, and Ray Carpenter, DIRECTV’s Chief Financial Officer. The combined company will be headquartered in El Segundo, California.

TPG Inc. to Acquire AT&T’s 70% Stake in DIRECTV

TPG Inc. (NASDAQ: TPG) and AT&T Inc. (NYSE: T) today announced a definitive agreement under which TPG will acquire from AT&T the remaining 70% stake in DIRECTV that it does not already own. TPG will invest in DIRECTV through TPG Capital, the firm’s U.S. and European private equity platform. The transaction between TPG and AT&T is expected to close in the second half of 2025, subject to customary closing conditions. Completion of this transaction is not contingent on DIRECTV’s acquisition of DISH.

For more information on the terms of the change in ownership, please review the press release.

Timing and Approvals

The transaction, which the boards of directors of both companies have unanimously approved, is expected to close in the fourth quarter of 2025, subject to the receipt of regulatory approvals, the successful closing of the Exchange Offer, and the satisfaction of other customary closing conditions.

Please visit www.BrighterTVFuture.com for more information and updates about the transaction.

Advisors

PJT Partners is acting as lead financial advisor to DIRECTV. Barclays is acting as lead financial advisor to TPG. J.P. Morgan is acting as lead financial advisor to EchoStar. BofA Securities, Evercore, LionTree and Morgan Stanley also provided financial advice to DIRECTV and TPG. Ropes & Gray LLP, Crowell & Moring LLP and HWG LLP, are acting as legal counsel to DIRECTV. Ropes & Gray LLP, Cleary Gottlieb Steen & Hamilton LLP and Mintz, Levin are providing regulatory advice to TPG. White & Case LLP and Steptoe & Johnson PLLC are acting as legal counsel to EchoStar.

Respective Conference Call and Webcast Details

DIRECTV Details:
Time: 9:30 a.m. EDT
Dial-In: 1-833-470-1428
Conference ID: 751806
Webcast: https://www.netroadshow.com/events/login?show=b9ad3e01&confId=71772

EchoStar Details:
Time: 8:30 a.m. EDT
Dial-In: (877) 484-6065 (U.S.) and (201) 689-8846
Conference ID: 13749306
Presentation/Details: ir.echostar.com 

About DIRECTV

As a leader in sports and entertainment for 30 years, DIRECTV provides industry-leading content and an amazing user experience with or without a satellite. By reimagining what is possible, DIRECTV’s mission is to aggregate, curate and deliver exceptional, innovative service tailored to customers’ interests. In 2023, DIRECTV elevated the customer experience by delivering Gemini, which can integrate customers’ content from their third-party streaming services onto a single one-stop, digital experience. At DIRECTV, the sports season never ends, and customers are treated to broadcasts of several major sports, including the NFL, MLB, NBA, NHL, and multiple domestic and international soccer leagues. DIRECTV provides customers the choice of watching sports, movies, and TV shows on their TVs at home or their favorite mobile devices via the DIRECTV app.

About EchoStar

EchoStar Corporation (Nasdaq: SATS) is a premier provider of technology, networking services, television entertainment and connectivity, offering consumer, enterprise, operator, and government solutions worldwide under its EchoStar®, Boost Mobile®, Sling TV, DISH TV, Hughes®, HughesNet®, HughesON™ and JUPITER™ brands. In Europe, EchoStar operates under its EchoStar Mobile Limited subsidiary and in Australia, the company operates as EchoStar Global Australia. For more information, visit www.echostar.com and follow EchoStar on X (Twitter) and LinkedIn.

©2024 EchoStar. Hughes, HughesNet, DISH and Boost Mobile are registered trademarks of one or more affiliate companies of EchoStar Corp.

Additional Information About the Transaction and Where to Find It

This press release references certain terms of the Exchange Offer but does not purport to be a comprehensive summary of the terms of the Exchange Offer. This press release shall not constitute an offer to sell, or a solicitation of an offer to purchase, any securities and, shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. 

Forward-Looking Statements

This press release has been prepared by DIRECTV (“we”, “us” or the “Company”) for informational purposes only and for the exclusive use of the recipient. All statements other than statements of historical fact included in this press release are forward-looking statements, which are subject to risks and uncertainties. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business, including the pending acquisition of DBS. These forward-looking statements are based on assumptions that we have made in light of our industry experience and our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (many of which are beyond our control) and assumptions. In particular, the estimated cost synergies disclosed herein were projected by DIRECTV’s management. DIRECTV may fail to realize, or not realize in the amounts anticipated or within the expected timeframe, the estimated synergies, because, among other factors, these cost synergies may require capital investment or integration expenses, and many of these cost savings can only be realized following negotiations with third parties, whose support and cooperation cannot be assured. We operate in a highly competitive, consumer and technology driven and rapidly changing business, regulatory and various other factors could adversely affect our business, financial condition and results of operations in the future and cause our actual results to differ materially from those contained in the forward-looking statements.  Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual operating and financial performance and cause our performance to differ materially from the performance anticipated in the forward-looking statements.  Should one or more of these uncertainties materialize, or should any of these assumptions prove incorrect, our actual operating and financial performance may vary in material respects from the performance projected in these forward-looking statements. Any forward-looking statement made by us in this press release speaks only as of the date on which we make it. Factors or events that could cause our actual operating and financial performance to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.

Contacts

DIRECTV

Investor Contact:
investors@directv.com 

Media Contact:
media@directv.com 

EchoStar

Investor and Media Contact:
news@dish.com 

1 DIRECTV’s estimate of cost synergies consists, among other factors, of selling, general and administrative savings (including from reduction in overhead expenses, elimination of overlapping support functions, consolidation of customer support resources and rationalization of sales force), technological and engineering savings (including from elimination of duplicate tech investments, consolidation of service platforms, upgrading to more efficient technical services and digitization of billing and collection processes), as well as content and procurement savings (including by benefiting from preferential rates, elimination of overlapping contracts, improved ability to repackage channels and reduction in rate card disparities). Any potential synergies will be realized over time, and may require capital investment or integration expenses, or negotiations with third parties which may not be successful and may be offset by subscriber losses or increased costs and expenses. Cost synergies assume a closing date by September 30, 2025.

 

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SOURCE DIRECTV

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Savan Secures Five-Year Contract to Support USDA BioPreferred Program

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VIENNA, Va., Sept. 30, 2024 /PRNewswire/ — Savan is pleased to announce that it has been awarded a prestigious contract with the United States Department of Agriculture (USDA) BioPreferred Program. Under this contract, Savan will provide technical and program support services for up to five years, reinforcing its role as a trusted partner in advancing the USDA’s mission.

The BioPreferred Program, housed within the Rural Business Cooperative Services office in USDA’s Rural Development mission area, aims to spur economic growth in rural communities by promoting the development, purchase, and use of biobased products. These efforts help reduce the nation’s reliance on fossil fuels, contributing to a more sustainable and resilient economy.

“We are honored to continue our partnership with the USDA and support the BioPreferred Program’s mission of fostering innovation and sustainability in rural America and beyond,” said Marissa Mamone, Manager at Savan. “Our team is committed to furthering our partnership of over five years by delivering expert data management and mission support that allows the USDA to make data-informed decisions.”

With this new contract, Savan looks forward to continuing its legacy of providing innovative solutions that empower the USDA BioPreferred Program to achieve its goals. By combining technical expertise with a deep commitment to sustainability, Savan will play a crucial role in fostering economic growth and environmental stewardship across rural communities nationwide. Together with the USDA, Savan remains dedicated to supporting the development of a robust biobased economy that benefits both the environment and future generations.

About Savan     

Savan is a premier data and information management-focused firm that is a trusted partner to public sector clients, helping them solve their most critical data challenges with sustainable success that is uniquely tailored to their environment. Savan Group is headquartered in Vienna, Virginia.

For media inquiries and more information about this project or Savan’s range of services, please contact: hq@savangroup.com.

View original content:https://www.prnewswire.com/news-releases/savan-secures-five-year-contract-to-support-usda-biopreferred-program-302262699.html

SOURCE Savan

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Restricting Self-Preferencing in Digital Markets May Do More Harm Than Good: UMD Smith Researcher

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COLLEGE PARK, Md., Sept. 30, 2024 /PRNewswire/ — Self-preferencing (when a platform favors its own products or services over those of third parties) by large tech companies is scrutinized as anticompetitive in legislation proposed in Congress to restrict the practice. However, passage of the bills could unintentionally raise consumer prices by reducing competition between sellers, according to research co-authored by Associate Professor of Marketing Bobby Zhou at the University of Maryland’s Robert H. Smith School of Business.

The American Innovation and Choice Online Act (AICOA) restricts the nation’s largest tech companies from not only engaging in self-preferencing but also other acts, like limiting the number of products competing companies can put on large digital platforms. The Open App Markets Act keeps app marketplaces from engaging in self-preferencing and prohibits marketplaces with over 50 million users from forcing developers to use an in-app payment system owned or controlled by the app store.

“Regulatory agencies in the U.S. are worried that the fate of millions of consumers is being determined by a few big firms,” says Zhou. Under AICOA when a shopper searches for a product, a large online retail platform would have to first display “whatever product aligns with that consumer’s personal preferences with the one with the best fit coming up first,” says Zhou. So, if you always buy Stanley water bottles, when you search for water bottles, Stanley drinking cups would be displayed first instead of one of the platform’s own brands.

Research by Zhou in separate papers — “Antitrust Regulation” with Daniel Sokol at the University of Southern California and “Self-preferencing and Search Neutrality in Online Retail Platforms” with Tianxin Zou at the University of Florida — finds this kind of regulation may lead to higher prices.

If self-preferencing by the largest digital markets goes away, the seller whose product appears first during a search may decide to raise prices because it has enough well-matched customers to extract that profit or surplus. The seller whose product appears second might also charge more for the same reason. “This is a situation where both sellers have very strong incentives to keep their prices high, so they don’t really compete head-to-head,” Zhou says. “To some extent, this ex-ante (preventative) regulation backfires.”

The European Union has already enacted regulations that ban big tech companies from making sure their products are displayed before those of other firms. The rules have been highly criticized and the European Commission recently opened an investigation into whether Apple, Alphabet and Meta are complying with the EU’s Digital Markets Act. 

In their paper, Zhou and Sokol assert that digital markets have become increasingly important for the economy, as they enable new forms of innovation, competition and value creation in the process of exchanging goods, services and information. And Zhou says, “The Justice Department and the Federal Trade Commission are justified in looking into big tech platforms. I just caution against hasty decisions that are nearly impossible to reverse.”

About the University of Maryland’s Robert H. Smith School of Business
The Robert H. Smith School of Business is an internationally recognized leader in management education and research. One of 12 colleges and schools at the University of Maryland, College Park, the Smith School offers undergraduate, full-time and flex MBA, executive MBA, online MBA, business master’s, PhD and executive education programs, as well as outreach services to the corporate community. The school offers its degree, custom and certification programs in learning locations in North America and Asia.

Contact: Greg Muraski, gmuraski@umd.edu

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SOURCE University of Maryland’s Robert H. Smith School of Business

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Quiq Welcomes CX Veterans Mike Zinne as First Chief Experience Officer and Cristina Bravo Olmo as SVP of Marketing

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Leader in Customer-facing AI Agent Deployments Prepares for Next Stage of Growth as Enterprise Confidence in Generative AI Increases and Buying Accelerates

BOZEMAN, Mont., Sept. 30, 2024 /PRNewswire/ — Quiq, the leader in customer-centric AI for CX, is bolstering its executive bench and CX expertise with the addition of two former Zendesk leaders: Mike Zinne and Cristina Bravo Olmo. Zinne will lead Client Services, Customer Support, Customer Success, Solution Consulting, and Professional Services, and Bravo Olmo will oversee all aspects of Marketing at Quiq.

According to Forrester, “Conversational AI is entering an entirely new phase, thanks to genAI and LLMs. Usable chatbots and IVAs that will deliver far better customer (and employee) experiences – plus those much-vaunted cost savings – are finally within reach for brands. Specifically, genAI and LLMs will improve conversational AI for brands by: massively reducing application development time…reaping significant ROI that will only rise…[and] making usable, friendly chatbots the norm.” (The State Of Conversational AI, Forrester Research, Inc., 6 September 2024.) A complimentary copy of the report is available here.

Both executives are critical hires as an increasing number of enterprise brands turn to vendors with deep CX expertise, like Quiq, when building industry- and brand-specific AI agents. Simultaneously, current Quiq customers are rapidly expanding into new cases, including those that are customer-facing, as trust in Quiq’s customer-centric AI for CX grows. As a result, Quiq’s daily conversation volume has nearly doubled year over year in each  of the past five years.

“There is no one better at delivering client service in the CX space than Zinne,” said Quiq Founder and CEO Mike Myer. “It’s hard to find someone who is truly an expert in building authentic relationships with enterprise executives, mastering technical details, and establishing scalable processes, but Zinne possesses all of these skills and much more. I worked with him at RightNow and then Oracle after the acquisition, and I have been hoping to work with him again ever since. I’m thrilled to welcome Zinne back to my team.”

Zinne will make his first public appearance on behalf of Quiq at Customer Contact Week (CCW) in Amsterdam on October 7. He will join Quiq customers, Panasonic Head of Customer Service Governance Adam Neale, and Panasonic Digital Service Manager Eugen Majeri, in leading a workshop entitled, “A Path to Personalized CX that Maximises Business Outcomes.” If you are attending CCW and would like to meet with Zinne or another member of the Quiq team, please contact Press@Quiq.com.

“This is a great time to be in CX SaaS and I’m honored to join Quiq in its quest to keep consumers at the center of every decision as more and more brands embrace AI,” said Zinne. “I am confident that combining all of our technical interactions with clients into a single team will help us accelerate our clients’ successes and turn their customers into brand loyalists.”

Previously, Zinne was the Chief Customer Officer at Outreach, the VP of Customer Experience at Zendesk, and the VP of Sales Consulting at Oracle. Mike has a proven track record of building and scaling world-class professional services and customer success teams. He has successfully managed global customer organizations and thrives on delivering custom yet simple approaches to customer experiences. While his passion is customer delight, Mike has experience in a wide range of executive roles and is an asset in managing profitability and growth in SaaS organizations.

“Cristina is phenomenal at putting herself in the shoes of our clients and seeing everything we produce through their eyes, which is critical when you’re working with emerging technology,” added Myer. “I am an engineer by trade so I can ensure our product is best-in-class, but I depend on domain superstars, like Cristina and Zinne to tell the Quiq story and deliver CX results. They will be instrumental in Quiq’s growth because they are the best at converting clients into champions and ensuring every CX leader who believes in the value of seamless journeys and is relentless in their pursuit of CX excellence knows the Quiq name.”

Previously, Bravo Olmo held marketing leadership roles at Sigma Computing, Wrike, Zendesk, Marketo, and Trend Micro. She has extensive B2B SaaS marketing experience, a legacy of building successful go-to-market strategies, and a proven ability to lead high-performance teams. While at Zendesk, Bravo Olmo was a key member of the internal IPO team, and while at Marketo, she founded Marketing Nation, the company’s customer community.

“Since Zendesk, my heart has been in CX. I have been waiting for the right company to come along so I can return to it, and I found what I have been looking for in Quiq,” said Bravo Olmo. “The CX space had been more or less stagnant since the first wave of cloud-native solutions transformed how brands engage with consumers in the early 2010s. The introduction of Generative AI has brought much needed excitement to the space, and I am thrilled to join a company that is leading customer-centric AI for CX innovation.”

About Quiq
Quiq is an AI for CX platform and the leader in customer-centric AI for CX. Quiq creates best-in-class solutions that enable seamless customer journeys across channels and between AI agents and humans. Built by CX and AI experts, Quiq delivers on the promise of generative AI by driving revenue, reducing costs, and improving CX outcomes. With Quiq’s AI Studio, enterprise brands get the best of “build” with control and customization, and the best of “buy” with expert support, security, and scalability. The world’s leading brands, including Terminix, Volvo, and IHG Hotels & Resorts, trust Quiq to improve CX outcomes. Learn how your team can be their best https://quiq.com/.

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SOURCE QUIQ, INC.

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