updated 07:10 pm EDT, Tue June 14, 2011
Outbids MetroPCS and others
Dish Networks is close to reaching an agreement to purchase bankrupt satellite smartphone provider Terrestar Networks for $1.2 to $1.4 billion, according to a Reuters report on Tuesday. Terrestar declared bankruptcy in October of last year and its assets include wireless spectrum.
Terrestar has been up for auction as a result of its bankruptcy. The original bid deadline was last Wednesday, but it was extended to tomorrow, June 15; although that time limit might also be extended.
Others involved in the bidding included a group of senior Terrestar noteholders and MetroPCS.
Ergen, through Dish and its holding parent Echostar has been on a buying spree. In March, Dish bought the assets of bankrupt satellite services provider DBSD. In April the company bought Blockbuster, which was also auctioned off in bankruptcy. In February, EchoStar bought satellite and broadband communications provider Hughes Communications.