12 September 2023
Dish Network and EchoStar have revealed plans to merge, a deal they claim would create a global leader in both terrestrial and non-terrestrial wireless connectivity.
The companies explained that the all-stock transaction would yield significant cost savings and revenue synergies, in addition to creating a business able to provide a broad set of communication and content distribution services.
After completion, Dish Network shareholders will own around 69% of the new entity’s common stock with the remainder allocated to EchoStar shareholders.
Current Dish Network president and CEO Erik Carlson will depart the business following the merger, with the combined entity set to be headed by current EchoStar chief Hamid Akhavan.
Ergen said that the deal is “a strategically and financially compelling combination,” adding Dish Network’s “substantial past investments in spectrum and its wireless buildout, combined with EchoStar’s recent launch of Jupiter 3, are expected to significantly reduce near-term capex requirements.”
The deal is subject to regulatory approval and is expected to close by the end of the year.