Shares of Dish fell 2.6% to $56.48 Thursday on the news.
Dish dropped the bid shortly before the start of a trial that will determine if Dish chairman Charlie Ergen illegally purchased LightSquared debt on behalf of his company. According to The Wall Street Journal, the deal isn't technically dead until the deadline at 11:59 p.m. on Friday.
The LightSquared bid was seen as a way for Dish to expand into mobile video and other Internet services. The wireless broadband company owns many valuable spectrum licenses, which would help Dish enter the wireless market.
Dish was recently rumored to be looking into making a bid for T-Mobile (TMUS) as a way to enter the wireless market. Such a bid may rival a bid from Sprint (S) owner Softbank.
TheStreet Ratings team rates Dish Network as a Hold with a ratings score of C+. The team has this to say about its recommendation:
"The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and generally higher debt management risk."