DBSD North America has been in Chapter 11 bankruptcy reorganization since May 2009. Now it is being acquired by Dish Network for approximately $1 billion.
DBSD, which had been a subsidiary of ICO Global Communications, is in the business of providing an advanced hybrid system which combines satellite and terrestrial communications to support wireless voice, data and/or Internet services throughout the United States.
Under the deal announced Tuesday (2/1), Dish will provide debtor-in-possession financing to DBSD until it emerges from bankruptcy court oversight. That loan is in the amount of $87.5 million. Closing of the acquisition by Dish will require approval from the FCC and the bankruptcy court.
RBR-TVBR observation: Two-way broadband is the market segment where wired cable has enjoyed an advantage over satellite competitors. This acquisition is obviously designed to make Dish more competitive in that arena – not to mention making better Internet service available to people in areas not served by cable.