DISH Acquires DBS and OTT Assets from EchoStar

[Scott Greczkowski]

DISH Acquires DBS and OTT Assets from EchoStar

• Deal gives DISH end-to-end control over DBS, Sling TV customer experience
• Businesses anticipate Q1 '17 closing

ENGLEWOOD, Colo.--(BUSINESS WIRE)-- DISH Network Corporation and EchoStar Corporation today announced they have executed an agreement that will transfer certain EchoStar assets and operations, including its EchoStar Technologies hardware and software development group, its national and regional uplink business, its managed fiber backhaul network serving all U.S. DMAs and its OTT development group to DISH in exchange for DISH's 80 percent economic interest in Hughes Retail Group held in the form of a tracking stock.

This transaction also transfers to DISH the 10 percent stake in Sling TV held by EchoStar, wireless spectrum licenses covering four markets in the 28 GHz band and certain real estate properties.

DISH will continue to market satellite broadband under the brand dishNET to rural customers.

"With this transaction 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," said DISH President Erik Carlson. "Not only do we gain full control of product development roadmap for DBS and Sling TV but we also anticipate achieving operational efficiencies."

The transaction is structured in a manner to be a tax-free exchange and is expected to close in the first quarter of 2017, subject to satisfaction or waiver of closing conditions.

 

[charlesrshell]

DISH Acquires DBS and OTT Assets from EchoStar

• Deal gives DISH end-to-end control over DBS, Sling TV customer experience
• Businesses anticipate Q1 '17 closing

ENGLEWOOD, Colo.--(BUSINESS WIRE)-- DISH Network Corporation and EchoStar Corporation today announced they have executed an agreement that will transfer certain EchoStar assets and operations, including its EchoStar Technologies hardware and software development group, its national and regional uplink business, its managed fiber backhaul network serving all U.S. DMAs and its OTT development group to DISH in exchange for DISH's 80 percent economic interest in Hughes Retail Group held in the form of a tracking stock.

This transaction also transfers to DISH the 10 percent stake in Sling TV held by EchoStar, wireless spectrum licenses covering four markets in the 28 GHz band and certain real estate properties.

DISH will continue to market satellite broadband under the brand dishNET to rural customers.

"With this transaction 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," said DISH President Erik Carlson. "Not only do we gain full control of product development roadmap for DBS and Sling TV but we also anticipate achieving operational efficiencies."

The transaction is structured in a manner to be a tax-free exchange and is expected to close in the first quarter of 2017, subject to satisfaction or waiver of closing conditions.

What in the world does all this mean in layman's terms? Is Charlie really still in charge of everything? Will all the Hopper software issues be fixed quicker?

 

[boba]

It almost always means in the long run you will pay more for whatever you use that they provide.

 

[goaliebob99]

What I think this means is that it's a step in the direction of a merger. Basically, the technical side of the business, the uplinks, the fiber network and the OTT platform went back to Dish. This smells like Charlie is in the process of finalizing a deal with a telecom player IE: Tmobile or Verizon, ect. He's about to pull an AT&T by having all of these assets as a part of the Dish brand. He can now sell the Dish brand with the technical capabilities to anyone who wants to bid on it. Mark this post. Go buy some Dish Stock. I would buy some Tmobile stock as well. From what John L (Tmobile) said at CES and Charlie is doing, this could be Charlie's play out of the DBS market into retirement and handing Dish off to someone who can do something good with it. Oh boy things are about to get interesting if this is how it all plays out!!!!

My speculation is that Tmobile is the bidder.

 

[charlesrshell]

What I think this means is that it's a step in the direction of a merger. Basically, the technical side of the business, the uplinks, the fiber network and the OTT platform went back to Dish. This smells like Charlie is in the process of finalizing a deal with a telecom player IE: Tmobile or Verizon, ect. He's about to pull an AT&T by having all of these assets as a part of the Dish brand. He can now sell the Dish brand with the technical capabilities to anyone who wants to bid on it. Mark this post. Go buy some Dish Stock. I would buy some Tmobile stock as well. From what John L (Tmobile) said at CES and Charlie is doing, this could be Charlie's play out of the DBS market into retirement and handing Dish off to someone who can do something good with it. Oh boy things are about to get interesting if this is how it all plays out!!!!

My speculation is that Tmobile is the bidder.

Thanks

 

[goaliebob99]

I forgot to add that the Software is also a part of this deal, so you have a one packaged deal for everything.

 

[charlesrshell]

I forgot to add that the Software is also a part of this deal, so you have a one packaged deal for everything.

Did DISH ever finish expanding their software office in Denver or Aurora or wherever it is?

 

[JSheridan]

I hope it's TMobile. If it's Verizon I think that will really suck for everybody connected to DISH.

 

[charlesrshell]

I hope it's TMobile. If it's Verizon I think that will really suck for everybody connected to DISH.

Why is that?

 

[rad]

Or could be simply be cost reduction, duplication of corporate staff can be eliminated?

 

[JSheridan]

Why is that?

We're in Verizon country for wire line service and IMHO it's a terrible company. The product, service and pricing is abysmal. People wait literally weeks for new service connections and many days or weeks for a service call. Verizon Wireless is a little different story but they're just a subsidiary of the main Verizon which I believe are the ones that are interested in DISH.

TMobile on the other hand is a dynamic, modern company with forward ideas and very competitive pricing. IMHO they could really get the most out of the DISH potential.

 

[MikeD-C05]

Taking money from your right pocket and putting it in your left one. In Charlie's case anyway.


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[Peter Parker]

DISH and echostar have been separte legal entities for some time but they have been hopelessly intertwined.

 

[JosephB]

I agree with K9Sat 1000%, this is getting DISH ready for a merger. I still don't get the exact rationale behind splitting Echostar and Dish in the first place. I think maybe they expected to sell more of their technology to other companies, but they are never going to be Arris (the company that sells most of the cable companies their hardware and network equipment)

This looks like it gets all of the consumer TV stuff under DISH and all of the commercial and internet-by-satellite stuff stays under Echostar. I would not be surprised to see a merger announcement between Dish and someone else (probably Verizon or T-Mobile) within 6 months

 

[bryanw20]

DISH and echostar have been separte legal entities for some time but they have been hopelessly intertwined.

I'm pretty corp. dumb; but I thought Echo was the start, big dish company, and Dish was the pizza pan company, I thought they were 1 in the same. Guess not.

 

[JosephB]

I'm pretty corp. dumb; but I thought Echo was the start, big dish company, and Dish was the pizza pan company, I thought they were 1 in the same. Guess not.

They were one in the same from their founding until 2008, when they were split into two separate companies.

After they were split, Echostar bought Hughes from DirecTV. This almost completely puts Echostar and Dish back together and leaves the old Hughes as the remaining "Echostar", although there is a little bit of the old Echostar left too.

 

[Juan]

I think it's a giant tax writeoff

Sent from my SM-G920V using the SatelliteGuys app!

 

[goaliebob99]

I hope it's TMobile. If it's Verizon I think that will really suck for everybody connected to DISH.

I hope it's T-Mobile as well. I really like John. Could you imagine Slow Cooker Sunday on Dish! We should ask him to bring back the Charlie Chat's LOL.

 

[comfortably_numb]

It won't be Verizon. VZW is merging with Charter and working on an MVNO service with Comcast

 

[lakebum431]

From an end user perspective, I hope that it is Verizon. I would love a deal like DTV has with ATT (unlimited data streaming for Dish).