DISH has been struggling financially for some time now. Recently, it merged with EchoStar in an effort to address these issues but, according to an SEC filing last March, DISH will use a “substantial amount of cash” in the next 12 months. It “raises substantial doubt about [the company’s] ability to continue as a going [sic] concern,” EchoStar said.
Now DISH has lost subscribers in the second quarter and fears over a possible bankruptcy are growing, according to Craig Moffett from MoffettNathanson. In a research note on EchoStar, Craig Moffett said, “We believe EchoStar is instead highly likely to go bankrupt, quite possibly by the end of the year.”
To address this, DISH’s CEO said the company is actively looking for new investors. Many wonder if bankruptcy could be an option if DISH is unable to find enough capital. If not, bankruptcy may be its only option.
DISH continues to see subscriber numbers decline in both its core satellite TV service and Sling TV streaming platform. The company lost a total of 348,000 TV subscribers in the first quarter of this year, leaving it with 8.178 million TV subscribers. Sling TV, DISH’s streaming service, lost roughly 135,000 subscribers. DISH TV also lost 213,000 subscribers. This is an improvement from the same period last year when the company lost 552,000 TV customers.
These losses come as DISH invests heavily in building out its 5G network infrastructure, aiming to become a major competitor in the wireless market currently dominated by companies like AT&T, T-Mobile, and Verizon.
DISH needs an additional $3 billion to finish its 5G network buildout. But can DISH finish its 5G network buildout before it faces bankruptcy?