Analysts at MoffettNathanson LLC, an equity research firm that focuses on tech, media, and telecom, told clients at the time that the third-quarter earnings report was bad and added that “The overwhelming probability here has always been that Dish would enter bankruptcy sometime in the next few years. Today’s results likely accelerate that.”
As 2024 began, EchoStar merged with Dish. On May 8th Craig Moffett, co-founder of the aforementioned MoffettNathanson, predicted that the most likely outcome for Dish was a bankruptcy filing over the next four to six months. This time period is closing in and a possible bankruptcy is not surprising. After all, even EchoStar noted in an SEC filing made last March that Dish will burn through a “substantial amount of cash” in the next 12 months which “raises substantial doubt about [the company’s] ability to continue as a going concern.”
Moffett has a more recent forecast for Dish saying that “We believe EchoStar is instead highly likely to go bankrupt, quite possibly by the end of the year.” To make matters worse, Dish will need to spend $3 billion to finish its 5G network and there is a legitimate question about whether this can be accomplished before a bankruptcy filing is made.
