DISH Network (NASDAQ: DISH) appears to be increasingly trying to sell assets and raise money. It continues to battle speculation from insiders that it could face bankruptcy, according to the television program On The Money.
The satellite-TV company is expected to meet its commitment to cover 70 percent of the country with a 5G wireless network by mid-June. But sources are growing skeptical that DISH will have money to finish its buildout, notes the New York Post.
One source told On The Money that DISH Co-founder and Chair Charlie Ergen is trying to sell some of the company’s assets. “He is trying to sell everything that is non-core and to finance assets that are financeable,” said one source close to the situation. “The problem is there are only very small things to sell. It’s a drop in the bucket.”
While Ergen had previously explored several partnership options, none of those appear to be moving forward. The merger DISH explored with fellow satellite provider DirecTV has stalled, sources add. Likewise, customers continue to cut the cord and discard satellite TV service, and talks with Amazon about providing Prime customers with spectrum appear to be going nowhere, the On The Money sources said.
As Ergen tries to get enough money to move forward with the 5G buildout, he’s also been spending more time in Washington, D.C., meeting with regulators in the hopes of getting more time to finish it, notes the New York Post. The company’s next deadline is mid-June 2025, and only requires that DISH cover 75 percent of PEAs in the U.S., Inside Towers reported. However, it will require billions of dollars because it means DISH will have to cover rural and difficult to serve regions.
“We believe the most likely path forward for DISH near term is to negotiate an extension on its 2025 FCC coverage requirement after meeting its June 2023 deadline,” New Street Research Policy Analyst Blair Levin said in a recent client note. “A 1-2 year extension would enable DISH to conserve or at least delay $2-3 billion of capital spending that would give it more runway to grow its consumer and enterprise subscriber base.”
But whether regulators will grant an extension is unclear. “The only thing that can’t save him is the thing he can’t buy — time,” one source told On The Money. DISH did not respond to a request for comment.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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