Dish to take over EchoStar’s broadcast assets | Major Businesses | Business
By continuing to use this site you consent to the use of cookies on your device as described in our privacy policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. [Close]
Dish Network is planning to pick up EchoStar Corp’s languishing broadcast satellite assets for $800 million.

dish 21 may 2019The sale covers nine satellites, the satellite operations team of employees, and licensing for an orbital slot at 61.5 degrees, where the EchoStar-16 broadcast-focused satellite operates.

EchoStar’s Satellite Services division saw its revenue decline a full 10% last year to $358 million. EchoStar president and CEO Mike Dugan said in a statement that selling the business will “allow EchoStar to focus our efforts on our high growth business of broadband services and other initiatives, while eliminating a negative growth component of our financial performance and the risk associated with providing services to a solitary customer.”

He was referring to the fact that Dish is EchoStar’s main customer, accounting for 90% of its service revenue. For Dish, it makes sense to bring the assets in-house.

The deal is structured to be a “tax-free exchange,” and is scheduled to close in the second half of 2019.