- The DISH owned satellites being transferred to EchoStar are EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV. The satellites together have an estimated weighted average remaining useful life of approximately nine years. As a result, EchoStar's owned and leased fleet will expand to a total of 17 satellites.
- EchoStar is expecting to generate approximately $145 million of incremental revenue from the new satellites in 2014.
- DISH will receive Preferred Tracking Stock that represents 80% of the economic value of HRG, while EchoStar will retain the remaining 20% of the aggregate economics of HRG.
- EchoStar will continue to own all assets associated with the delivery of its satellite broadband service including Spaceway 3 and EchoStar XVII, its high capacity, next-generation broadband satellite and will retain all of the economics associated with the provisioning and management of the satellite broadband service offering, including wholesale services.
- Hughes will continue to manage and conduct the day-to-day business of the HRG.
- The exchange of the satellites from DISH for the Preferred Tracking Stock is expected to be a tax free transaction for EchoStar.
EchoStar Announces 4th Quarter And Fiscal Year 2013 Earnings And Strategic Business Transaction
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