ENGLEWOOD, Colo., Jan. 31, 2017 /PRNewswire/ -- EchoStar
Corporation (NASDAQ:SATS) announced today that it executed an
agreement with DISH Network Corporation (NASDAQ:DISH) to exchange
its EchoStar Technologies businesses for the Hughes Retail Group
(HRG) tracking stock.
The HRG tracking stock was issued to subsidiaries of DISH in
March 2014. It represents an 80%
interest of the economic performance of the consumer retail
satellite broadband business of EchoStar's Hughes segment. The
Hughes satellite broadband business is the largest in the
North America, and the recent
launch of the EchoStar19 satellite will provide additional capacity
for growth starting in the 2nd quarter of 2017.
The EchoStar Technologies businesses consist of the business
segment of EchoStar that designs, develops and distributes digital
set-top boxes, provides satellite uplinking and broadcast services
and develops and supports streaming video technology, with DISH
being the largest customer of these services. The transaction
will include certain other EchoStar investments in joint ventures,
spectrum licenses and certain real estate properties.
The transaction will take the form of an exchange by EchoStar of
two companies that will own the EchoStar Technologies businesses
and other assets to be transferred for the HRG tracking stock, and
is structured in a manner to be a tax-free exchange. It is expected
to close during the first quarter of 2017, subject to customary
conditions. Following the closing, the HRG tracking stock
will be retired.
"I am delighted that we have been able to sign this transaction"
said Mike Dugan, President and CEO
of EchoStar. "It will result in EchoStar owning 100% of the
economics of the growing HRG business and divesting the less
strategic set-top box business. It will focus EchoStar's mission on
its core satellite and broadband services and eliminate the
complexity associated with the tracking stock. The clearer
business focus and simplified ownership structure will provide an
improved platform to pursue strategic opportunities."
EchoStar will host a conference call to discuss the transaction
on February 1, 2017 at 9:00 a.m. Eastern Time. The dial-in information
for the call is 1-877-815-1625 (U.S.), 1-716-247-5178
(international), conference Id 64143820. A presentation is
currently available for download and viewing during the call on
EchoStar's website at
http://sats.client.shareholder.com/events.cfm.
EchoStar also is furnishing certain information for the quarter
and year ended December 31, 2016 in a
Current Report on Form 8-K filed today with the Securities and
Exchange Commission.
About EchoStar
EchoStar Corporation (NASDAQ: SATS) is a premier global provider
of satellite and video delivery solutions. Headquartered in
Englewood, Colo., and conducting
business around the globe, EchoStar is a pioneer in secure
communications technologies through its EchoStar Satellite
Services, EchoStar Technologies and Hughes Network Systems business
segments.
For more information, visit echostar.com. Follow @EchoStar on
Twitter.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
This press release may contain statements that are forward
looking, as that term is defined by the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on management's beliefs, as well as assumptions made by, and
information currently available to, management. When used in this
release, the words "believe," "anticipate," "estimate," "expect,"
"intend," "project," "plans," and similar expressions and the use
of future dates are intended to identify forward looking
statements. Although management believes that the expectations
reflected in these forward looking statements are reasonable, it
can give no assurance that these expectations will prove to have
been correct. You are cautioned not to place undue reliance on any
forward-looking statements, which speak only as of the date made.
These statements are subject to certain risks, uncertainties, and
assumptions. See "Risk Factors" in EchoStar's and HSSC's Annual
Reports on Form 10-K for the year ended December 31, 2015 and Quarterly Reports on Form
10-Q for the quarterly period ended September 30, 2016 filed with the Securities and
Exchange Commission and in the other documents EchoStar files with
the Securities and Exchange Commission from time to time. The
forward-looking statements speak only as of the date made, and
EchoStar Corporation expressly disclaims any obligation to update
these forward-looking statements.
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SOURCE EchoStar Corporation