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Dish Networks and EchoStar have announced their merger, bringing together a leading satellite communications business with a satcaster, streaming services, and a nationwide 5G network. This merger marks a reunion between the two companies, as EchoStar was spun out as a standalone company by Dish in 2008.

In recent years, Dish has shifted its focus to the telecom industry due to the impact of cord-cutting and competition on the satellite pay-TV business. The company acquired Boost, a prepaid mobile brand, and its wireless spectrum in 2020 to establish itself as the fourth national carrier after the merger of Sprint and T-Mobile. Dish has also expressed interest in merging with rival DirecTV in the past, but regulatory obstacles prevented a deal.

The merger between Dish Networks and EchoStar is expected to be completed by the end of the year. The combined company will be headquartered in Englewood, Colorado and will include consumer and business brands such as Dish Wireless, Boost Wireless, Sling TV, Dish TV, EchoStar, Hughes satellite services, HughesON managed services, and HughesNet satellite internet.

The merger aims to achieve cost and revenue synergies, and both companies are optimistic about the long-term growth and sustainability of the business. Dish’s investments in spectrum and wireless buildout, along with EchoStar’s recent launch of the Jupiter 3 satellite, are expected to reduce capital expenditure requirements. The combined company will have a strong position in delivering satellite and wireless communication and content distribution capabilities.

Under the terms of the merger, EchoStar stockholders will receive 2.85 common shares of Dish for each share of EchoStar they hold. Dish Network shareholders will own approximately 69% of the merged company, while EchoStar shareholders will own 31%. Hamid Akhavan, the CEO of EchoStar, will lead the combined company, while Dish Network’s CEO Erik Carlson will step down. Charles Ergen will serve as the executive chairman of the board.

With Dish’s 5G wireless network covering over 70% of the US and EchoStar’s Jupiter 3 satellite offering significant capacity, the merged company is well-positioned to provide a wide range of satellite and wireless communication and content distribution services.

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