Dish Network
stock fell on Monday after the group posted a surprise third-quarter loss. That’s not the only news: the satellite television provider also dropped deal news and announced that its CEO is stepping down.
Dish
(ticker: DISH) reported a loss of 26 cents a share on revenue of $3.7 billion in the third quarter, a disappointing result, with analysts surveyed by FactSet expecting a profit of 11 cents a share on revenue of more than $3.8 billion.
Shares in Dish tumbled 4% in premarket trading.
Investors have more than the poor earnings to mull over, with deal news and a management shakeup also announced on Monday.
Dish announced Monday that it was selling its spectrum assets and some 120,000 prepaid mobile subscribers in Puerto Rico and the U.S. Virgin Islands to
Liberty Latin America
(LILA).
“This transaction will enhance competition within the wireless market in Puerto Rico and the USVI, while providing DISH with additional capital to focus on our wireless business in the United States,” said Tom Cullen, Dish’s executive vice president of corporate development.
The deal, worth some $256 million, consists of cash and international roaming credits and is expected to close next year. Shares in
Liberty Latin America
advanced 1% in premarket trading.
Dish also said that its president and CEO, W. Erik Carlson, intends to resign effective November 12. The company added that Carlson will remain on the board until the completion of its merger with
EchoStar
(SATS)— a deal announced in August that will create a rival to
AT&T
(T) and
Verizon Communications
(VZ). Dish said that it intends to work with
EchoStar
to appoint that company’s president and CEO, Hamid Akhavan, to the top job.
Write to Jack Denton at [email protected]
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