Charlie Ergen flew to Dubai to fundraise for satellite TV giant

[Bruce]

If things are this bad for Dish, imagine what they are like for DirecTV.

Charlie Ergen quietly flew to Dubai earlier this month to woo potential investors for his struggling satellite TV giant Dish, On The Money has learned.

The mercurial billionaire’s fundraising attempt came just a week before Ergen admitted on Dish’s May 3 earnings call that “the debt market is essentially closed.”

Dish has seen its bonds trade for as little as 30 cents on the dollar as it faces $14.7 billion worth of distressed debt.

“They need a white knight to save them from their financial situation,” one source to the matter told On The Money. “Otherwise they’ve got to be considering all options — including bankruptcy.”

Dish (DISH) short interest is 20%.

Dish’s Charlie Ergen flew to Dubai to fundraise for satellite TV giant, source says

Dish has committed to build out a 5G wireless network that will serve 70% of the US by summer of 2023.

nypost.com

Dish Chairman Charlie Ergen recently flew to Dubai to try to get funding - report

Dish Chairman recently flew to Dubai to try to get funding from investors for his struggling satellite communications company, according to a NY Post report.Dish (DISH) need to raise...

seekingalpha.com

 

[Bruce]

more-

“With DISH needing additional capital and debt maturities next year, we need to see a major step change in the level of cash burn to get comfortable with the wireless side of the business,” CreditSights senior analyst Davis Herbert wrote following the earnings call.

A report from S&P Global Ratings stated the financial position “may be unsustainable long term.”

Total debt is $20 Billion, I have no idea what debt is due next year, but cash on hand is $2 Billion based on the link.

That is not enough for the build out on his new network in the near future, which as of now, is just a money pit, to get a loan he is going to have to offer something up in today’s world of high interest rates and a extremely tight bond market, which is that way because of the recent bank fiascos.

Not being political, it is just how it is right now.

DISH Network Corporation Long Term Debt 2010-2023 | DISH

DISH Network Corporation long term debt from 2010 to 2023. Long term debt can be defined as the sum of all long term debt fields.

www.macrotrends.net

 

[dishdude]

I highly doubt they'll be able to raise enough to keep the build out going. My prediction is Dish starts selling off the wireless spectrum and towers to keep the satellite business going.

 

[Bruce]

I highly doubt they'll be able to raise enough to keep the build out going. My prediction is Dish starts selling off the wireless spectrum and towers to keep the satellite business going.

From the above links-

Little wireless traffic has actually been transmitted over Dish’s 5G network.

Dish’s Charlie Ergen flew to Dubai to fundraise for satellite TV giant, source says - NewsBreak

Charlie Ergen quietly flew to Dubai earlier this month to woo potential investors for his struggling satellite TV giant Dish, On The Money has learned. The mercurial billionaire’s fundraising attempt came just a week before Ergen admitted on Dish’s May 3 earnings call that “the debt market is...

www.newsbreak.com

 

[nelson61]

I highly doubt they'll be able to raise enough to keep the build out going. My prediction is Dish starts selling off the wireless spectrum and towers to keep the satellite business going.in

In the earnings call he hinted they were trying to convert the 1 billion in debt rolling over next year into an ownerhip investment.

 

[navychop]

I suspect Charlie doesn’t want that equity to be voting shares.

 

[MikeD-C05]

If things are this bad for Dish, imagine what they are like for DirecTV.

Charlie Ergen quietly flew to Dubai earlier this month to woo potential investors for his struggling satellite TV giant Dish, On The Money has learned.

The mercurial billionaire’s fundraising attempt came just a week before Ergen admitted on Dish’s May 3 earnings call that “the debt market is essentially closed.”

Dish has seen its bonds trade for as little as 30 cents on the dollar as it faces $14.7 billion worth of distressed debt.

“They need a white knight to save them from their financial situation,” one source to the matter told On The Money. “Otherwise they’ve got to be considering all options — including bankruptcy.”

Dish (DISH) short interest is 20%.

Dish’s Charlie Ergen flew to Dubai to fundraise for satellite TV giant, source says

Dish has committed to build out a 5G wireless network that will serve 70% of the US by summer of 2023.

nypost.com

Dish Chairman Charlie Ergen recently flew to Dubai to try to get funding - report

Dish Chairman recently flew to Dubai to try to get funding from investors for his struggling satellite communications company, according to a NY Post report.Dish (DISH) need to raise...

seekingalpha.com

Maybe Charlie will go to same place that Jared Kushner did in the middle east and swing a $2 billion loan, like he did when he left office.

 

[Jim S.]

I highly doubt they'll be able to raise enough to keep the build out going. My prediction is Dish starts selling off the wireless spectrum and towers to keep the satellite business going.

Should've never bought it in the first place. If we had an effective and responsible FCC, they would've asked him what the hell he was trying to do years ago.

 

[NYDutch]

Should've never bought it in the first place. If we had an effective and responsible FCC, they would've asked him what the hell he was trying to do years ago.

"WASHINGTON, D.C.—Dish Wireless has until June 30th to build out its 5G network to cover 70% of the U.S. population, with the deadline coming a year after the company had to meet a 20% coverage milestone in June 2022."

"At CTIA’s 5G Summit this week, Dish’s EVP of Network Development Dave Mayo said that the company expects to meet that deadline."

Dish: We'll meet our June build-out deadline | RCR Wireless News

Dish Wireless has until June 30th to build out its 5G network to cover 70% of the U.S. population; company execs are confident.

www.rcrwireless.com

 

[bookworm370]

Charlie Ergen quietly flew to Dubai earlier this month to woo potential investors for his struggling satellite TV giant Dish, On The Money has learned.

I've been in the PE (private equity) space for years. If he's looking to raise capital for PE firms going to them does not bod well. PE firms and investors prefer to come to the operations to gauge what they are buying and the synergies that can be had to get their money back.

If he is talking to the Saudis, then I see them buying the controlling share of Dish and then immediately pushing, and making happen, a merger with Direct TV. Then folding all the services (multiple cuts, lost jobs, more profit and positive cash flow) into one company. I can see two companies out of this at the end.

* Dish/Direct serving the Satelite marketplace
* Dish Networking serves the telecom marketplace.

Two companies, two CEOs, each with a clear mission and under the control of the PE investors that want to double their money and then sell off, or split off, the companies to recoup their investment.

I've seen and been part of precisely these scenarios so many times I've run out of fingers to count. No PE firm, except for Buffet's Berkshire Hathaway, buys and holds companies.

 

[Josephinelcajon]

I've been in the PE (private equity) space for years. If he's looking to raise capital for PE firms going to them does not bod well. PE firms and investors prefer to come to the operations to gauge what they are buying and the synergies that can be had to get their money back.

If he is talking to the Saudis, then I see them buying the controlling share of Dish and then immediately pushing, and making happen, a merger with Direct TV. Then folding all the services (multiple cuts, lost jobs, more profit and positive cash flow) into one company. I can see two companies out of this at the end.

* Dish/Direct serving the Satelite marketplace
* Dish Networking serves the telecom marketplace.

Two companies, two CEOs, each with a clear mission and under the control of the PE investors that want to double their money and then sell off, or split off, the companies to recoup their investment.

I've seen and been part of precisely these scenarios so many times I've run out of fingers to count. No PE firm, except for Buffet's Berkshire Hathaway, buys and holds companies.

Sad but makes a lot of sense as many other corporations are doing the same. Merging to cut overhead in order to stay alive literally! I don't like change the older I get but see the possibilities this might lead to improvements.

 

[Bruce]

Should've never bought it in the first place.

Just a opinion-

Trying to create and have a Broadband Network was good future planning since we all know it will be the delivery method of the future.

The problem was money, they basically have run of cash in a real bad time, bond markets gone, high interest rates ( look at what the rates were when they started buying up all the spectrum) and no one believes that loaning money to a Satellite TV Service is a good idea right now.

For example, when AT&T bought DirecTV in 2017, it was valued as a almost $70 Billion Dollar Company, when AT&T wanted it off the books and made the deal with TPG Capital, it was valued as a $15 Billion Dollars Company, who would loan money to that, a company that lost, roughly, $55 Billion in value.

Unfortunately, Dish is in the same boat, in 2014, they had 14.5 Million Satellite Subscribers, now a tad over 7 Million, Banks will look at that and say not a good risk, hence why he is looking for alternatives for financing in Dubai.

Again, building a 5G Network, great idea, 100% agree , they just did not have enough money, no one thought back when they were buying the spectrum, that things would be the way they are now.

 

[Bruce]

Sad but makes a lot of sense as many other corporations are doing the same. Merging to cut overhead in order to stay alive literally! I don't like change the older I get but see the possibilities this might lead to improvements.

Just a opinion-

Merging will help both companies in the short run, but they will still continue to lose customers in the long run.

The other problem is even if they announced a merger today, it will take 1-1.5 years for the Government to say yes ( they could say no due to how many lost jobs a merger would create),, that means in that timeframe, they still need cash to keep things running and building the Network, who will finance it, specially at the chance the Government says no.

I always thought Dish had the advantage over DirecTV based on DirecTV having a higher rate of churn ( and their old equipment and announcing they are no longer building new satellites), but DirecTV is not spending billions for a 5G Network, so it could have better cash reserves then Dish.

Also, people write that having a Broadband Network will help Dish so they can bundle service like the Cable Companies, well the biggest Cable Company that does that, Comcast, just lost over 600,000 video customers in the 1st quarter, not helping them anymore.

 

[MikeD-C05]

"WASHINGTON, D.C.—Dish Wireless has until June 30th to build out its 5G network to cover 70% of the U.S. population, with the deadline coming a year after the company had to meet a 20% coverage milestone in June 2022."

"At CTIA’s 5G Summit this week, Dish’s EVP of Network Development Dave Mayo said that the company expects to meet that deadline."

Dish: We'll meet our June build-out deadline | RCR Wireless News

Dish Wireless has until June 30th to build out its 5G network to cover 70% of the U.S. population; company execs are confident.

www.rcrwireless.com

And they have to have 75% of coverage by June of 2025 too.

 

[Almighty1]

I've been in the PE (private equity) space for years. If he's looking to raise capital for PE firms going to them does not bod well. PE firms and investors prefer to come to the operations to gauge what they are buying and the synergies that can be had to get their money back.

If he is talking to the Saudis, then I see them buying the controlling share of Dish and then immediately pushing, and making happen, a merger with Direct TV. Then folding all the services (multiple cuts, lost jobs, more profit and positive cash flow) into one company. I can see two companies out of this at the end.

* Dish/Direct serving the Satelite marketplace
* Dish Networking serves the telecom marketplace.

Two companies, two CEOs, each with a clear mission and under the control of the PE investors that want to double their money and then sell off, or split off, the companies to recoup their investment.

I've seen and been part of precisely these scenarios so many times I've run out of fingers to count. No PE firm, except for Buffet's Berkshire Hathaway, buys and holds companies.

I thought Jefferies Financial Group formerly Leucadia National which was known as a miniature Berkshire Hathaway also buys and holds companies or was that assets?

 

[Almighty1]

Just a opinion-

Merging will help both companies in the short run, but they will still continue to lose customers in the long run.

The other problem is even if they announced a merger today, it will take 1-1.5 years for the Government to say yes ( they could say no due to how many lost jobs a merger would create),, that means in that timeframe, they still need cash to keep things running and building the Network, who will finance it, specially at the chance the Government says no.

I always thought Dish had the advantage over DirecTV based on DirecTV having a higher rate of churn ( and their old equipment and announcing they are no longer building new satellites), but DirecTV is not spending billions for a 5G Network, so it could have better cash reserves then Dish.

Also, people write that having a Broadband Network will help Dish so they can bundle service like the Cable Companies, well the biggest Cable Company that does that, Comcast, just lost over 600,000 video customers in the 1st quarter, not helping them anymore.

And let's remember that Comcast is a Mobile Virtual Network Operator who uses Verizon's network which actually has the best coverage due to having cellular bands at 850Mhz while DISH's spectrum will be limited as they can't just build close to the clients but rather, range and signal will be limited as they cannot build at low frequencies which has longer range and penetrate buildings better. Same reason why T-Mobile and Sprint and other PCS carriers which are 1.9Ghz and not cellular still has poor coverage in most areas. In my area being San Francisco which started with Viacom Cablevision in July 20, 1984 when I first had service, it became part of TCI (Telecommunications Inc.) which AT&T (the real one, not the current SBC (Southwestern Bell Corporation) bought out and became AT&T Broadband Inc that was later sold to Comcast.

Just out of curiousity, how much of DISH does Charlie actually own because if Google is correct, he owns 10% which means that DISH with a market capitalization of 35.7Billion, his shares are worth $357 Million. How much leverage does he really have when institutions hold 82.5% or more of the company's shares with the later probably controlling the outcome of things.

 

[bookworm370]

I thought Jefferies Financial Group formerly Leucadia National which was known as a miniature Berkshire Hathaway also buys and holds companies or was that assets?

Haven't personally worked with them, but it's possible in the PE world as the holding company doesn't care about the vertical market a company they acquire is in. They replace most of the C-Level positions with ones that they hire (or have consultants interview and hire the executives as the principals have no idea how to interview a CEO, CFO or CIO for the company they just bought. And they hire a 'bucking funch' of high-priced consultants that are supposed to know the market and operations, and go on YOUR balance sheet and payroll, and they proceed to trust them over someone that has been there for 30 years.

All the holding company cares about is hitting the quarterly numbers and getting their fee every month. Even though a PE firm owns the business, they still are a drain on the cash flow as they siphon off $$$ every month, but it doesn't change their ownership stake one cent. Great racket.
You can find some ethical ones like Berkshire, but for every Berkshire, there are 20 leaches that will buy out your debt for controlling interest and then try to fatten you up so they can sell the company at a profit in a five-year time horizon.

 

[ethanlerma]

Same reason why T-Mobile and Sprint and other PCS carriers which are 1.9Ghz and not cellular still has poor coverage in most areas.

Worth mentioning that T-Mobile (and Sprint as well because of the merger) now has the majority of the country covered in band 71, which is 600mhz. The old TMo/SPT concept of them only being appropriate for urban conditions does not really apply anymore, I’m personally a Google Fi customer (T-Mobile MVNO) and have not seen a dead spot in years, and that’s really good for rural Texas.

 

[navychop]

Charlie, his family and friends have a majority of the voting shares.

 

[SamCdbs]

DISH and DirecTV are, and always have been, aimed at different markets. Just look at the ads, back all the way to Day One.

Good TV, Better TV, DirecTV. Or today's (best they have had in years) Stop compromising.

Get DISH, you won't miss _______ all that much. SAVE!!! SAVE!!! SAVE!!!!

Different sorts of customers. Different goals. And, in a three-way market both had their roles to play. Now, with multiple yet thinner bundles from new linear TV providers like YTTV plus the alure of cord switching, i.e. living with only paid streaming services, or even true cord cutting i.e. living with only video that is free on the internet, the cost conscious market is very crowded.

So who is the DISH customer today, or tomorrow? Rural people who cannot get good internet, and often cannot get good, or any, cable and who want the minimum.

Is that a viable number? I don't think so.

The 5G stuff was foolish. The cell phone carrier market is already full.