Dish To Spend $1 Billion On Bankrupt Satellite Company

Have you ever seen something so cool you’d spend a billion dollars on it? Dish Network has, so it’s pulling a $1 billion bill out of its wallet to buy DBSD North America Inc., which has filed for Chapter 11 bankruptcy.

Dish announced the big-spender move in a press release. The sale, which is pending approval by the FCC, would give Dish control of DBSD’s work on a system that ties together satellite and ground-based wireless and internet antenna communication services. The acquisition could allow Dish to offer bundles to better compete with cable. Dish originally invested $45 million in DBSD back in 2009.

Would such a bundle make a Dish subscription more attractive to you?

DISH Network to Purchase DBSD, Developer of U.S. Hybrid Communications System [Dish Network via Engadget]

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  1. RobHoliday says:

    Dish sees the writing on the wall. The future is streaming on-demand video over the internet. Cable, and especially satellite, will eventually become only data providers (everything is data, TV, Phone and internet) not content or service providers.

  2. Red Cat Linux says:

    Would such a bundle make a Dish subscription more attractive to you?

    Bwahahahahah! A-hahahaha- ahaha (cough)

    No.

  3. Browncoat says:

    Hey, these are the same kind of decisions I make at the Blackjack table. Hope this works out better for Dish than it does for me.

  4. Nick says:

    That’s alotta bread?

    Nothing. I forsee rate hikes in the future claiming they just dropped a billion to “better provide service to our customers.”

    I’ll stick to cable thanks.

  5. Cheap Sniveler: Sponsored by JustAnswer.comâ„¢ says:

    Never. You hear me, pay TV? NEVER.

    … this does sound like more Comcast / NBC shenanigans. Here we go again.

    • darcmosch says:

      If you count a satellite company buying up another satellite company the same as a cable company buying a network, then ya they are totally the same… Wait, what?

      • Cheap Sniveler: Sponsored by JustAnswer.comâ„¢ says:

        Well, not exactly, as you said. We had a chance for a 3rd satellite TV provider here, and with this move, we’re back to 2.

        But as far as more industry consolidation, and the FCC rolling over for a chance at a cushy job in industry for commissioners after they’re out of a cushy FCC job, yes.

        • NeverLetMeDown says:

          No, there wasn’t a chance for a third satellite provider. That’s not what DBSD did, and it’s not what Dish is interested in.

          • MFfan310 says:

            There was a third satellite provider for most of the ’90s: Primestar. Owned by five cable companies (Cox/Comcast/MediaOne/TCI/Time Warner Cable), and acquired by DirecTV in 1999.

            • RvLeshrac says:

              There’s a reason they dumped it, you know. DirecTV and Dish were the only two satellite providers that ever had a chance.

  6. schdav says:

    “He who digs, loses. “

    Industry lingo for the common practice of waiting for a company who builds new infrastructure to go bust, then coming in and getting a good deal without any of the headaches or risk.

  7. YouDidWhatNow? says:

    Well, if the added capabilities include ground-based high-speed internet, then you go on.

    Satellite internet is horrifically bad. To the tune of “I think it’s better than dial-up…”

    • dolemite says:

      Yeah…it all depends on the internet. If it is laggy, low speed like satellite internet, forget it. If it is comparable to cable, we might have a winner.

    • Beppo says:

      Too true. I like explaining to city folk what a “Fair Access Policy” is and then watch their jaws drop. “Is…is that legal?” Yes, yes it is.

  8. NeverLetMeDown says:

    They’re buying it for the spectrum, not for the actual business. Nice block of pretty good quality spectrum, at that.

  9. LastError says:

    Let’s see…. no.

    That was hard.

  10. DanKelley98 says:

    OH MY. Why did Consumers Union buy Consumerist? I don’t see any ads here! Couldn’t be to make money. But maybe Consumers Union saw something. Perhaps Dish sees something in this bankrupt company that CU saw in Consumerist.

  11. Press1forDialTone says:

    Why would you sink $45 million into a company that went bankrupt until
    you were using the $45 million to make -sure- they went bankrupt so you
    could get it for pennies on the dollar. Ah, yes, American business know-how.
    If Dish and Direct/TV saw the writing on the wall they would combine and form
    a new cable company to compete against Time-Warner, GE/NBC/Universal er..
    Comcast. As for consumer satellite uplinks, I don’t want more EMR especially
    more powerful EMR that uplink takes going into my body. For dishes to be
    very reliable and do uplink they need to be larger in diameter, So stylish, but it
    doesn’t matter, we don’t do outside anyway.

  12. FrugalFreak says:

    dish + unlimited or large cap broadband=win. Only reason I haven’t gone dish is internet. No dsl and refuse typical lousy sat internet with equipment costs..