EchoStar announced an agreement with Dish Network Corporation to sell its Satellite Services Business to the company and its subsidiaries. The transaction was valued at USD 800 million. The Broadcast Satellite Services sector includes the EchoStar business that manages and provides satellite broadcasting services to Dish and its subsidiaries, including Dish Mexico.
Business includes nine satellites plus employees who handled satellite operations, associated properties, and licensing for an orbital slot, in exchange of about 22.9 million Dish Network Corporation’s shares, which will be distributed between EchoStar’s shareholders. The sale is expected to take place during the second half of 2019, subject to the usual conditions, including certain regulatory approvals.
Mike Dugan, EchoStar’s President and CEO, said that the transaction ‘will allow EchoStar to focus our efforts on our high growth business of broadband services and other initiatives’. Dish President, Erik Carlson, expressed that ‘with this sale, we will vertically integrate all the elements that define our customer experience—one team will deliver the full Dish and Sling TV experience end to end’, and added that ‘Not only do we gain full control of the product development roadmap for satellite and Sling TV, but we also anticipate achieving operational efficiencies’.