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Dish Network (NSDQ: DISH) has made a cash bid of $1.375 billion for bankrupt telecom Terrestar Networks, Reuters reports, as it looks to fend off other competitors such as MetroPCS Communications.
Both Dish and satellite rival DirecTV (NYSE: DTV) face increasing competition from traditional cable companies, as they offer more bundled services designed to retain and grow subscribers as more consumers turn to over-the-top services.
According to a Manhattan bankruptcy court filing cited by Reuters (NYSE: TRI), Dish says Terrestar can extend a deadline to obtain bids for its assets — its wireless airwaves are particularly sought — until June 27. The bankruptcy judge scheduled to oversee an auction to of those assets on June 30. The court will have to grant its approval for any deals covering Terrestar’s assets.
The New York telco filed for Chapter 11 bankruptcy protection in October. If Dish’s bid is accepted, it would raise an additional $15 million financing from the current $75 million it has to run the business through the bankruptcy transition period.