Dish Network Reportedly Makes $2B Offer For LightSquared Spectrum

Dish Network is quite interested in entering the wireless business, and according to a new report, the company is now targeting LightSquared as a way to bolster its existing spectrum holdings. Source speaking to Bloomberg claim that Dish chairman Charlie Ergen recently offered to buy LightSquared's spectrum for $2 billion. The offer was reportedly made on May 15, and LightSquared's is said to have until May 31 to make a decision. Neither company has officially commented on the rumors, but the tipsters claim that LightSquared would use the funds to pay off its secured debt. 

LightSquared previously tried to build out its own 4G LTE wireless network, but the FCC shot down its plans to do so over concerns that its spectrum could interfere with GPS systems. Things went downhill from there, with Sprint ending its spectrum hosting agreement with LightSquared, followed by the company's decision to file for bankruptcy. LightSquared submitted new network plans with the FCC toward the end of 2012, but the federal agency has yet to approve that spectrum for use in a wireless network.

Meanwhile, Dish's spectrum has already been a go ahead by the FCC for use in a wireless network, and since then the company has been trying to find a partner to help it break into the wireless industry. The company has already made offers for Clearwire and Sprint, and now Dish apparently sees LightSquared as a good way to help it bolster its existing spectrum. Considering how desperate Dish has been to get into the wireless business, it's no surprise to see that it's now gunning for LightSquared's spectrum, especially after the issues that LightSquared has been having getting approval for its own network.

We'll have to wait until May 31 to see how this matter plays out, but it'll be interesting to see if Dish can snag LightSquared's spectrum and how that could influence Dish's potential deal with Sprint. It's also worth noting that Bloomberg's sources claim that Dish's offer is a "stalking horse agreement," which means that other company's could come in with a higher bid for LightSquared's spectrum. The next 11 days could be quite a bit more exciting than we'd previously anticipated, stay tuned for more details as they emerge. 

Source: Bloomberg

LightSquared Preparing For Bankruptcy Protection Filing Tomorrow

Seemingly destined-to-fail LightSquared just might be out of options. After getting a high-five from Sprint and plenty of attention for its initiatives in bringing yet another wireless option to America, those blasted GPS interference issues or "supposed" issues, depending on who you ask eventually became too much to overcome. According to a breaking report out of The Wall Street Journal, Philip Falcone's venture is seriously teetering on the edge of bankruptcy, as "negotiations with lenders to avoid a potential default faltered," according to the ever-present "people familiar with the matter." Purportedly, the two sides have until 5PM tomorrow to strike a deal that'll keep the firm out of bankruptcy court (if you'll recall, it owes over $1.6 billion dollars to various entities), but given just how far apart these sides remain, its fate seems all but sealed. We'll be keeping an ear to the ground for more, but don't go placing bets on yet another debt-term violation waiver.

LightSquared Founder Philip Falcone To Step Down

In an effort keep the troubled LightSquared from the brink of defaulting on its debt, its founder will step down from the company. While it doesn't look immediate, it's Philip Falcone's latest attempt to extend a debt-term violation that expires this morning. According to the same sources, if the initial extension is okayed, Falcone and LightSquared's lenders are aiming for a greater period of around 18 months to repay $1.6 billion in loans and pass the FCC's requirements for its network. The company's board is still deliberating on whether to accept the deal, which would stop the company filing for bankruptcy protection. Unfortunately, it looks like those new 4G network dreams just got hazier.

Falcone Considering Bankruptcy For LightSquared

Hedge fund manager Phil Falcone said he is considering seeking bankruptcy protection for his wireless network company LightSquared Inc., a venture that has consumed billions of dollars from his funds and has become a difficult sticking point with his investors.

A bankruptcy filing is "one of the options I am considering," Mr. Falcone said in an e-mail, saying it's the "best way" for him to maintain control of the company. "Spectrum value does not decrease in bankruptcy,"