ENGLEWOOD, Colo., May 20, 2019 /PRNewswire/ -- DISH Network
Corporation and EchoStar Corporation today announced they have
executed an agreement that will transfer certain EchoStar
operations and other assets that comprise the company's Broadcast
Satellite Service (BSS) Business, including nine direct broadcast
satellites and the certain key employees responsible for satellite
operations, licensing for the 61.5-degree orbital slot, and select
real estate properties to DISH in exchange for approximately 22.9
million shares of DISH Network Corporation stock that will be
distributed to EchoStar shareholders.
"In 2017, when DISH acquired the EchoStar assets that we needed
to deliver the DISH TV and Sling TV customer experiences, key
broadcast satellite operations and services remained with
EchoStar," said DISH President and CEO Erik
Carlson. "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
EBITDA."
DBS spacecraft involved in the transaction will include EchoStar
VII, EchoStar X, EchoStar XI, EchoStar XII, EchoStar XIV, EchoStar
XVI, EchoStar XXIII, Nimiq 5 and QuetzSat-1.
The transaction is structured in a manner 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.
BofA Merrill Lynch acted as financial advisor to DISH Network
Corporation in the transaction. Sullivan & Cromwell LLP acted
as legal counsel for DISH Network Corporation in the
transaction.
About DISH
DISH Network Corporation is a connectivity company. Since 1980,
it has served as the disruptive force in pay-TV, driving innovation
and value on behalf of consumers. Through its subsidiaries, the
company provides television entertainment and award-winning
technology to millions of customers with its satellite DISH TV and
streaming Sling TV services. DISH operates a national in-home
installation workforce, as well as an advertising sales group
delivering targeted advertising solutions on DISH TV and Sling TV.
In addition to its TV services, DISH has commenced buildout of a
national narrowband "Internet of Things" network to provide
innovative connectivity solutions and applications through its
strategic spectrum portfolio. DISH Network Corporation (NASDAQ:
DISH) is a Fortune 250 company.
Cautionary Statement Concerning Forward-Looking
Statements
Certain statements contained herein may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements include statements about the benefits of the
transaction, including future financial and operating results and
DISH Network Corporation's plans, objectives, expectations and
intentions, and other statements that are not historical facts.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of DISH Network Corporation to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. More information about such risks, uncertainties
and other factors is set forth in DISH Network Corporation's
Disclosure Regarding Forward-Looking Statements included in its
recent filings with the Securities and Exchange Commission (the
"SEC"), including its annual report on Form 10-K for the year
ended December 31, 2018 and any subsequent quarterly reports
on Form 10-Q. Risks and uncertainties relating to the proposed
transaction include, but are not limited to, the possibility that
the transaction will not be completed, failure to obtain necessary
regulatory approvals or to satisfy any of the other conditions to
the transaction, adverse effects on the market price of DISH
Network Corporation's common stock, adverse effects on DISH Network
Corporation's operating results for any reason, including, without
limitation, because of a failure to complete the transaction,
failure to realize the expected benefits of the transaction,
significant transaction costs and/or unknown liabilities and
general economic and business conditions that affect DISH Network
Corporation following the transaction. The forward-looking
statements speak only as of the date made, and DISH Network
Corporation expressly disclaims any obligation to update these
forward-looking statements. Nothing herein shall be deemed to be a
forecast, projection or estimate of the future financial
performance of DISH Network Corporation following the completion of
the transaction.
For more information on DISH TV products and services, visit
www.dish.com
For more information on Sling TV products and services, visit
www.sling.com
For company information, visit about.dish.com
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SOURCE DISH Network Corporation