DTH

DISH buys EchoStar's DBS & OTT assets; gives control over Sling TV customer experience

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MUMBAI: 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 per cent economic interest in Hughes Retail Group held in the form of a tracking stock.

This transaction also transfers to DISH the 10 per cent 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.

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