Reston, Va. – Satellite TV provider DISH Network (NASD: DISH) said on
Tuesday it will pay $1 billion to acquire DBSD North America, a unit of ICO
Global Communications developing a hybrid satellite-terrestrial communications
As part of the deal, DISH will also provide the company, which in 2009
filed for Chapter 11 bankruptcy protection, with $87.5 million in
debtor-in-possession financing to continue operations.
The New York Times
reported that the acquisition is a move by DISH founder Charles Ergen to
acquire valuable broadband spectrum, with the hopes of possibly launching a 4G
or LTE network.
DBSD was until 2009 known as ICO North America.