- Deal will see DISH add nine satellites to its fleet as EchoStar focusses on broadband offering
- Dish buys Echostar satelittes
- Deal worth $800m
DISH has agreed to an $800 million deal to buy EchoStar Corp’s remaining broadcast satellite assets.
The deal will see DISH pick up nine satellites along with EchoStar’s operations team, and rights to an orbital slot at 61.5 degrees.
EchoStar president and CEO Mike Dugan said that selling the business will “allow EchoStar to focus our efforts on our high growth business of broadband services and other initiatives, while eliminating a negative growth component of our financial performance and the risk associated with providing services to a solitary customer.”
DBS spacecraft involved in the transaction will include EchoStar VII, EchoStar X, EchoStar XI, EchoStar XII, EchoStar XIV, EchoStar XVI, EchoStar XXIII, Nimiq 5 and QuetzSat-1.
“In 2017, when DISH acquired the EchoStar assets that we needed to deliver the DISH TV and Sling TV customer experiences, key broadcast satellite operations and services remained with EchoStar,” said DISH President and CEO Erik Carlson. “This transaction brings those operations, including the BSS satellites, associated assets and key team members, in house and we expect those additions will create operational efficiencies and improve both free cash flow and EBITDA.”
The transactions expected to close in the second half of 2019 and will see 22.9 million shares of DISH Network Corporation stock distributed to EchoStar shareholders.