Dish Network 2011 Annual Report Download - page 41

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31
31
In addition, our Blockbuster retail store operations face increasing competition from video rental kiosk, streaming
and mail order businesses. These competitive pressures have contributed to weak store-level financial performance
at many of our Blockbuster retail stores. We expect to close over 500 domestic stores during the first half of 2012 as a
result of weak store-level financial performance.
We continue to evaluate the impact of certain factors, including, among other things, competitive pressures, the
scale of our Blockbuster retail operations and other issues impacting the store-level financial performance of our
Blockbuster retail stores. These factors, or other reasons, could lead us to close additional Blockbuster retail stores.
There is no assurance that we will achieve the expected benefits from the Blockbuster Acquisition.
We may pursue acquisitions and other strategic transactions to complement or expand our business that may not
be successful and we may lose up to the entire value of our investment in these acquisitions and transactions.
Our future success may depend on opportunities to buy other businesses or technologies that could complement,
enhance or expand our current business or products or that might otherwise offer us growth opportunities.
We may be unable to obtain in the anticipated timeframe, or at all, any regulatory approvals required to complete
proposed acquisitions and other strategic transactions. Furthermore, the conditions imposed for obtaining any
necessary approvals could delay the completion of such transactions for a significant period of time or prevent them
from occurring at all. We may not be able to complete such transactions and such transactions, if executed, pose
significant risks and could have a negative effect on our operations. Any transactions that we are able to identify
and complete may involve a number of risks, including:
x the diversion of our management’s attention from our existing business to integrate the operations
and personnel of the acquired or combined business or joint venture;
x possible adverse effects on our operating results during the integration process;
x a high degree of risk involved in these transactions, which could become substantial over time,
and higher exposure to significant financial losses if the underlying ventures are not successful;
x our possible inability to achieve the intended objectives of the transaction; and
x the risks associated with complying with regulations applicable to the acquired business, which
may cause us to incur substantial expenses.
In addition, we may not be able to successfully or profitably integrate, operate, maintain and manage our newly
acquired operations or employees. We may not be able to maintain uniform standards, controls, procedures and
policies, and this may lead to operational inefficiencies. In addition, the integration process may strain our financial
and managerial controls and reporting systems and procedures.
New acquisitions, joint ventures and other transactions may require the commitment of significant capital that would
otherwise be directed to investments in our existing businesses. Commitment of this capital may cause us to defer
or suspend any share repurchases that we otherwise may have made.
These transactions pose substantial risks and require the commitment of significant capital both to complete the
acquisitions and to operate the acquired businesses following their acquisition. These acquisitions may result in
significant financial losses if the intended objectives of the transactions are not achieved. Some of the businesses
acquired by us have experienced significant operating and financial challenges in their recent history, which in some
cases resulted in these businesses commencing bankruptcy proceedings. We may acquire similar businesses in the
future. There is no assurance that we will be able to successfully address the challenges and risks encountered by
these businesses following their acquisition. If we are unable to successfully address these challenges and risks, our
business, financial condition or results of operations may likely suffer.