EchoStar revealed the completion of its previously announced spin-off and subsequent merger with Dish Network of the portion of its business that manages, markets, and provides broadcast satellite services primarily to Dish, Dish Mexico, S. de R.L. de C.V. and their respective subsidiaries; and telemetry, tracking, and control services to satellites owned by Dish and a portion of EchoStar’s other businesses, and certain related assets and business operations. The transaction was announced on May 20, and a record date of August 19 was announced on August 9. The transaction is structured in a manner intended to be tax-free to EchoStar and its stockholders.
Mike Dugan, President and CEO of EchoStar said: “The conclusion of this transaction enables EchoStar to focus on the growing broadband market and other strategic opportunities.”
Under the previously disclosed terms of the transaction, each holder of shares of Class A or Class B common stock of EchoStar who was entitled to receive the consideration in the transaction received one share of common stock of EchoStar BSS Corporation (“Newco”), a wholly-owned subsidiary of EchoStar that owned and operated the BSS Business as of the closing, for each share of EchoStar Class A or Class B common stock (together, the “EchoStar Common Stock”) held by such holder (the “Distribution”). Immediately following the completion of the Distribution, BSS Merger Sub Inc., a direct wholly-owned subsidiary of DISH was merged with and into Newco (the “Merger”), with Newco continuing as a wholly-owned subsidiary of DISH.