Satellite broadcasting network company DISH Network (DISH - Get Report) on Monday announced that is has struck a deal to buy another chunk of EchoStar's broadcast satellite service business for $800 million in stock.
As part of the deal, DISH Network will acquire nine direct broadcast satellites, licensing for the 61.5-degree orbital slot and some real estate properties in exchange for 22.9 million of Dish Networks' shares.
It is the second deal struck between the two companies. Dish Network in 2017 acquired other assets from EchoStar, including set-top box development, Sling TV technology, software development employees and U.S. satellite TV ground infrastructure.
Forget the remote reach. AutoHop is here. pic.twitter.com/kmw7AqyOxn— DISH (@dish) April 8, 2019
The latest addition is expected to create operational efficiencies and improve both free cash flow and earnings, the company said. The deal is expected to be completed in the second half of the year, subject to meeting typical closing conditions.
DBS spacecraft involved in the transaction will include EchoStar VII, EchoStar X, EchoStar XI, EchoStar XII, EchoStar XIV, EchoStar XVI, EchoStar XXIII, Nimiq 5 and QuetzSat-1.
Shares of Dish fell 11.2% to $31.39 after Pivotal Research downgraded to stock to hold from buy Federal Communications Commission Chairman Ajit Pai said he would recommend approval of the $26 billion merger of Sprint (S - Get Report) and T-Mobile US (TMUS - Get Report) .