Dish Network Drops Attempt to Buy LightSquared
Published on: 10th Jan 2014
Note -- this news article is more than a year old.
USA based Dish Network has dropped its bid to buy the bankrupt LTE operator, LightSquared, for the moment.
In a filing with a bankruptcy court, Dish said that it had withdrawn its USD2.2 billion offer to buy the company and its debt -- in a move that sent Dish's shares down on confusion about its long-term wireless plans.
Dish has spent a lot of effort seeking to take control of LightSquared and its radio spectrum assets in order to fold them into its own spectrum and deploy its own national mobile network.
LightSquared was forced into bankruptcy after the regulators blocked the launch of its LTE network following complaints from GPS receiver manufacturers that the mobile services interfered with their receivers.
The battle between the two companies has also been intense, with allegations that Dish, and its Chairman, Charles W. Ergen have been illegally buying up LightSquared debt in order to secure control of the company. It was that trial which was due to start when Dish said that it was dropping plans to buy the company.
Although Dish has formally dropped its takeover bid, it may be compelled to complete it anyway due to agreements made to its own lenders.