DISH Network Corporation (NASDAQ: DISH) and EchoStar Corporation have agreed to transfer certain EchoStar assets and operations, including its EchoStar Technologies hardware and software development group, its national and regional uplink business, its managed fiber backhaul network serving all US DMAs and its OTT development group to DISH in exchange for DISH´s 80 percent economic interest in Hughes Retail Group held in the form of a tracking stock, the company said.
This transaction also transfers to DISH the 10 percent stake in Sling TV held by EchoStar, wireless spectrum licenses covering four markets in the 28 GHz band and certain real estate properties.
DISH will continue to market satellite broadband under the brand dishNET to rural customers.
The transaction is structured in a manner to be a tax-free exchange and is expected to close in the first quarter of 2017, subject to satisfaction or waiver of closing conditions.
DISH Network, through its subsidiaries, provides approximately 13.643m pay-TV subscribers, as of September 30, 2016, with the highest-quality programming and technology with the most choices at the best value. DISH offers a high definition line-up with more than 200 national HD channels, the most international channels and award-winning HD and DVR technology.