Dish serves up $800m deal with EchoStar
By Abigail Townsend
Date: Monday 20 May 2019
(Sharecast News) - American satellite TV broadcaster DISH Network has acquired a swathe of assets from EchoStar in a deal worth $800m.
Under the terms of the deal, certain EchoStar operations and other assets in its broadcast satellite service (BSS) business will be transferred to DISH. These include nine direct broadcast satellites, the key employees responsible for satellite operations, licensing for the orbital slot and select real estate.
In return, EchoStar, a Colorado-based satellite specialist chaired by billionaire entrepreneur Charlie Ergen, will receive approximately 22.9m shares in DISH, valuing the all-stock transaction at around $800m. Ergen, who also executive chairman and co-founder of DISH, holds significant stakes in both companies.
The deal, announced on Monday, is the second in two years between the two businesses.
"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 chief executive 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 deal is expected to close in the second half of 2019.
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