DISH Network Almost Bags TerreStar

Bapun Raz

Staff member
Administrator
Joined
3 Nov 2010
Messages
30,746
Reaction score
49,014
DISH Network Corp. (NASDAQ:DISH), the second largest satellite TV operator in the U.S., is all set to acquire currently bankrupt TerreStar Networks Inc., which offers wireless services over a satellite network. TerreStar is at present up for sale after it filed for bankruptcy protection in last October with more than $1 billion in debt. Earlier this month, DISH Network has made a cash offer of $1.375 billion for TerreStar.

On June 21, 2011, the U.S. bankruptcy court in Manhattan has announced DISH Network as the “Stalking Horse” bidder for TerreStar to open the bidding process. The company was expected to compete with a group of senior debt holder of TerreStar and wireless operator MetroPCS Communications Inc. (NYSE:pCS). Any other company can also bid for TerreStar within June 27, 2011. However, any competing offer must start at $55.5 million higher than that of DISH Network’s offer.

Interesting, at the time of the close of bid for TerreStar, DISH Network remains the sole bidder. The bankruptcy auction is schedule to be held on June 30, 2011. TerreStar may cancel the auction if no one bid during that period. Further, if any company bids then it will be difficult to get court approval since it will come after the closing date of June 27. A bankruptcy court will hear the sale process on July 7, 2011. We expect under the changed scenario, DISH Network will easily get the court approval as the only bidder for TerreStar.

We believe DISH Network is trying hard to be the storage medium for the valuable wireless spectrum that can be used to grow a viable pay-TV distribution network or can transform the company to a wireless service provider. TerreStar owns around 20 MHz of wireless spectrum and is currently working on a project to launch world’s first satellite smartphone. TerreStar is currently engaged in a legal battle with Sprint Nextel Corp. (NYSE:S) for $104 million reimbursement claim for costs related to clearing spectrum bands.

In March 2011, DISH Network purchased bankrupt DBSD North America for $1.4 billion. This acquisition provides DISH Network an extremely valuable spectrum of DBSD for both wireless and wireline communications. Additionally, DISH Network itself owns a slot of highly demanded 700 MHz wireless frequency and tablets.Using these slots of airwaves, the company can form a formidable video-on-demand service over a wireless network of mobile handsets such as smartphones.



http://www.dailymarkets.com/stock/2011/06/28/dish-network-almost-bags-terrestar/
 
Thread starter Similar threads Forum Replies Date
A Same LCN for HD and SD channels on Dish Network USA Foreign DTH Services 0
DreamDTH.com Article Dish TV settles differences with Sun Network DreamDTH Articles Discussions 0
DreamDTH.com Article Dish TV, Sun Network engaged in talks to settle dues DreamDTH Articles Discussions 0
Deep.S DTH Updates Zee Network New Channel Nos. on Dish TV Dish TV 2
Shivraj Breaking Nation Live (Network 10)Removing from Dish TV.(Removed) Dish TV 6
Deep.S DDF Exclusive Some Exclusive Pics of All ITV Network Channels & Few Other Channels from Dish TV Dish TV 9
S Breaking Pay channels are shown on DD free dish as free, why can’t the same be free on cable network?....TRAI is looking into it. General DTH News & Discussions 29
M Why Dish TV network south channels are unable to scan in Solid 6141 pro STB C Band & KU Band Reception 6
U DD FREE DISH Package By Network DD Free Dish 3
Mudasir 4K Dish tv updated ten network epg Dish TV 11
Vivek.d2h Big Magic & Big Magic Ganga strengthen distribution network with DD Free Dish - See m DD Free Dish 1
JitendraKumar DishTV changed Network as Dish Lanka for TP 12170 H 40700 Dish TV Lanka 1
Thakur Dish Network in merger talks with US’ T-Mobile Foreign DTH Services 0
Thakur Dish Network Q1-2015 revenue up 5.3%; income doubles despite losing subscribers Foreign DTH Services 0
Dileep Kumar Higher 'other expense' pares Dish Network PAT to less than half in Q3-2014 General DTH News & Discussions 0
JitendraKumar Dish TV distribution network will include local people Dish TV 2
Thakur Dish Network and A+E sign multi-year contract renewal deal Foreign DTH Services 0
JitendraKumar 'Australia Network' Snaps from Dish TV Dish TV 1
JitendraKumar ABC/Australia Network Added on DD Free dish. DD Free Dish 39
G Focus network channels in dish tv Dish TV 10
Dileep Kumar TRACE makes first mark in US with DISH Network General DTH News & Discussions 0
JitendraKumar 6 Audio channels & 1 Network service removed from Dish TV Dish TV 18
M Transponders for Dish TV /Dish Lanka network Dish TV 106
pinankchheda internet service through dish network Tata Sky 3
Bapun Raz DirecTV merger deal with Dish Network on the cards Foreign DTH Services 1

Similar threads

Top Bottom
AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock