May 20, 2019
Dish Network May 20 announced it is combining certain EchoStar operations and other assets that comprise the company’s satellite business, including nine direct broadcast satellites and the certain key employees responsible for operations.
The 22.9 million stock transaction, which includes select real estate properties, will be distributed to EchoStar shareholders.
Dish in 2017 acquired select EchoStar assets to better deliver linear pay-TV and online platform Sling TV to subscribers. Key broadcast satellite operations and services remained with EchoStar, which is also owned by Dish chairman Charlie Ergen.
“This transaction brings those operations, including the BSS satellites, associated assets and key team members, in house and we expect those additions will create operational efficiencies and improve both free cash flow and pre-tax earnings,” Dish CEO Erik Carlson said in a statement.
The transaction is structured to be a tax-free exchange and is expected to close in the second half of 2019, subject to satisfaction or waiver of closing conditions.