DISH Network (NASDAQ:DISH) stock took a hit on Monday as the company unveiled plans to acquire EchoStar’s Broadcast Satellite Service (BSS) business in a deal that’s reportedly worth more than $800 million.
The move will see the Englewood, Co.-based television service provider acquire some operations and other assets from EchoStar’s BSS segment. DISH will shell out roughly 22.9 million shares of its stock to be distributed to EchoStar shareholders, which tallies up to over $800 million–the Friday closing price of the stock was $35.33 per share.
More specifically, DISH will attain nine Direct Broadcast Satellites (DBS), as well as certain key employees who are integral to the business’ satellite operations. The company will also get licensing for EchoStar’s 61.5-degree orbital slot, as well as select real estate properties.
The DBS satellites included in the acquisition include the EchoStar VII, EchoStar X, EchoStar XI, EchoStar XII, EchoStar XIV, EchoStar XVI, EchoStar XXIII, Nimiq 5, as well as the QuetzSat-1. “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 Network 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,” he added.
DISH stock is down roughly 5.9% on Monday following the news.