Dish set to acquire Chapter 11 satellite company DBSD
updated 09:55 pm EST, Tue February 1, 2011
Deal said to be worth $1 billion
Dish Network has announced that it will attempt to acquire DBSD North America, a satellite communications company that has been involved in ongoing Chapter 11 bankruptcy proceedings. The deal will reportedly cost approximately $1 billion, including an $87.5 million commitment as a debtor-in-possession credit facility to help bring the company out of bankruptcy protection ahead of the formal purchase.
Detailed reasons for acquiring DBSD have yet to be disclosed, though the latter company specializes in a hybrid terrestrial/satellite communications network capable of providing wireless voice, data, video and Internet services.
It is unclear if DBSD's technology will be used solely for Dish's television service, or if the company is planning to expand its offerings to include additional wireless services. The FCC recently approved a proposal from satellite company LightSquared, enabling the startup to trial a satellite-based broadband system in the US.
The DBSD acquisition has yet to be finalized, as the deal must be approved by the FCC and bankruptcy court.
