Dish Network To Acquire DBSD For $1 Billion

Posted Feb 2, 2011

DISH Network Corp. (NASDAQ:DISH) is going to acquire DBSD North America for $1 billion. Dish Network is also providing DBSD with an $87.5 million loan. This deal is assuming that the FCC and the government gives regulatory approval of the deal.

Dish Network has an interest in DBSD’s access to the broadband spectrum. With an increase in spectrum, Dish Network could build vast wireless networks for supporting data and voice communications.

?Dish also has some spectrum, and if you put DBSD and Dish together you could create a 4G or LTE network ? it?s a situation where one plus one equals three,? stated Kaufman Brothers analyst Todd Mitchell. DBSD filed for bankruptcy in May 2009.