Dish Network (DISH) may have a new motivation to pursue a deal with a carrier – its bid to acquire spectrum by purchasing LightSquared appears to be dead. Today a lawyer involved in LightSquared’s bankruptcy proceedings reportedly confirmed that Dish is out.
Dish had offered $2.2 billion to buy all of LightSquared’s spectrum. In 2012 the Federal Communications Commission told LightSquared that it could not use its 40 megahertz of spectrum in the 1.6 GHz band to offer mobile service because of potential interference with some GPS equipment operating in nearby bands. That decision prompted LightSquared’s bankruptcy filing.
Late last month LightSquared filed a new plan to exit bankruptcy protection with up to $3.75 billion from Fortress Investment Group, JPMorgan Chase and Melody Capital Advisors. That deal is contingent on LightSquared regaining access to some of its 1.6 GHz spectrum holdings.
LightSquared’s plan to exit bankruptcy is supported by Harbinger Capital Partners, which controls the company’s equity. Today’s New York hearing was to be the first step in helping the company’s creditors decide between LightSquared’s plan and the Dish bid, but now the Dish bid is apparently not an option.
Dish is not completely out of LightSquared’s hair yet, however. Its outspoken chairman Charlie Ergen has purchased LightSquared’s debt. LightSquared is suing Ergen, claiming that his action amounts to a purchase of its debt by a competitor, which is forbidden by its credit agreement.
Like LightSquared, Dish is eager to enter the wireless communications business. The company has tried unsuccessfully to buy both Clearwire and Sprint, and last month reports that Dish wants to buy T-Mobile US made the rounds.
Image source: Reuters
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