Dish Network (NSDQ: DISH) (Nasdaq: DISH) will acquire 100 percent of the equity of DBSD North America, a hybrid satellite and terrestrial TV company, for about $1 billion. DBSD has been going through bankruptcy process and the deal requires the approval of the FCC.
As part of the deal, Dish agrees to assume DBSD’s debt. The Englewood, Colorado satellite operator will provide a credit facility to DBSD that amounts to $87.5 million. In addition to the FCC, the deal is contingent on DBSD’s emergence from bankruptcy.
Like its cable and satellite operator rivals, Dish has experienced some subscriber losses in the past year, which is largely attributed to the weak economy and to a lesser extent, “cord-cutting.” (Technically, satellite might not directly apply to that, but…)
DBSD has been working on a service that combines the attributes of cable and satellite. With DBSD in its fold, Dish hopes to offer competing wireless voice, data and internet services packages versus those of its rivals. Release