Dish Network Chairman Charlie Ergen said he personally thought that he bankrupt LightSquared could be worth as much as $8.9 billion if it gained FCC approval for its long-planned and currently-stalled wireless network.
A witness for LightSquared told a U.S. Bankruptcy Court hearing that the company will likely get FCC approval to use its wireless spectrum by 2015, and that it may buy more airwaves.
BARCELONA, Spain--For Dish Network Chairman Charlie Ergen, it may be a case of "once bitten, twice shy." Ergen said he would stay out of a potential bid by Sprint for T-Mobile US.
Dish Network may have withdrawn its $2.2 billion bid to get control of LightSquared's spectrum, but LightSquared's plan to get out of bankruptcy rests on getting approval from the FCC to modify its spectrum holdings. Despite statements from Harbinger Capital Partners, LightSquared's chief backer, that such approval is "within reach," regulators have not yet set a timetable for granting such approval, according to a Bloomberg report.
Dish Network is pulling its $2.2 billion bid to acquire LightSquared's spectrum assets while LightSquared is in bankruptcy protection. That move presumably will the way for a group backed by Harbinger Capital Partners, LightSquared's chief backer, to take control of the company.
LightSquared wants to see the benefits of a potential FCC decision to rejigger its spectrum holdings, and Philip Falcone's Harbinger Capital Partners is continuing to fend off an attempt by Dish Network to take control of LightSquared.
Dish Network is considering a potential bid for T-Mobile US next year, according to a Reuters report, the latest product of a rumor mill churning out speculation on potential deals involving the No. 4 carrier.
Private equity firm Centerbridge Partners has dropped its $3.3 billion bid to buy LightSquared out of bankruptcy protection, but LightSquared said it is exploring a similarly structured deal with others. Meanwhile, Dish Network continues to lurk as a potential buyer for LightSquared.
Centerbridge Partners, a private equity firm, is preparing a $3.3 billion bid to buy LightSquared out of bankruptcy, according to multiple reports, in a deal that could upend Dish Network's own $2.2 billion bid for LightSquared.
According to a new report from New Street Research analyst Jonathan Chaplin, Charlie Ergen's Dish Network could acquire the most spectrum of any company--around 60 MHz--over the course of the next year or so. If Dish is indeed successful in acquiring the spectrum, the company would own a spectrum war chest of as much as 100 MHz--positioning the company as a potentially major player in the wireless market.