Dish Network, which has long coveted TerreStar’s broadband spectrum, will bid $1.375 billion as an authorized early bid, which will setting a minimum price for assets in the auction and ward off low bids from others. According to the bankruptcy court authorization, any competing bid for TerreStar must be $55.5 million higher than Dish’s offer.

   Dish said it agreed to be paid a $27.5 million breakup fee, plus expenses of up to $3 million, if it fails to win TerreStar’s assets. The deadline for bidding is June 27. The auction itself, is currently set for June 30.

   The bid comes shortly after Charlie Ergen named Joseph Clayton the new CEO and President of Dish Network – positions he formerly held. Ergen, who remains chairman of Dish Network, recently completed his acquisition of movie retail chain Blockbuster’s assets and is moving forward with its plans close at least 1,000 Blockbuster locations and take on the leases for about 500 remaining retail stores.

    Dish Network bought Blockbuster on April 7 for about $320 million, with $228 million of the purchase made in cash. A U.S. bankruptcy court approved the auction the same day. Dish Network said it purchased Blockbuster primarily for its video-on-demand service to complement Dish Network’s own satellite-TV offering but will use the Blockbuster locations to cross-sell its satellite services.

    In March, Dish Network received approval from a U.S. bankruptcy court to acquire hybrid S-band service provider DBSD North America. The court’s approval followed a Dish Network announcement in February that it placed a bid for DSBD for about $1 billion. Harbinger Capital Partners and Solus Alternative Asset Management then placed bids at about $1.14 billion for the bankrupt and reorganizing S-band provider, forcing Dish to increase its bid to $1.4 billion.

    Dish Network will provide $325 million more to DBSD’s parent company, Ico Global Communications, and remain committed to DBSD for another $87.5 million as debtor-in-possession credit facility.