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Dish Networks and EchoStar have announced their merger, bringing together two publicly traded companies to create a formidable force in the satellite and communications industry. The move marks a reunion for the two companies, as Dish had spun EchoStar into its own entity back in 2008. With the rise of cord-cutting and increased competition in the satellite pay-TV business, Dish has been focusing more on the telecom industry. In 2020, it acquired prepaid mobile brand Boost and its wireless spectrum to establish itself as the fourth national carrier after the T-Mobile and Sprint merger.

The merger between Dish Networks and EchoStar is expected to be completed by the end of the year. The new company will be based in Englewood, Colorado and will encompass a range of consumer and business brands, including Dish Wireless, Boost Wireless, Sling TV, Dish TV, EchoStar, the Hughes and Jupiter satellite services, HughesON managed services, and HughesNet satellite internet. The merger is projected to generate cost and revenue synergies.

Charles Ergen, chairman of the board of both companies, emphasized that the merger is aimed at fostering growth and building a sustainable long-term business. The combination of Dish’s extensive spectrum investments and wireless infrastructure, along with EchoStar’s recent launch of Jupiter 3, is expected to significantly reduce capital expenditure requirements in the near future. The merged company will have a comprehensive set of satellite and wireless communication capabilities.

Dish’s 5G wireless network currently covers over 70% of the United States. EchoStar’s Jupiter 3 satellite provides substantial available capacity for various terrestrial and non-terrestrial services. The combined company will be well-positioned to deliver a wide range of communication and content distribution solutions.

Under the terms of the merger, EchoStar stockholders will receive 2.85 common shares of Dish for each EchoStar share. This represents a premium of 12.9% to EchoStar stockholders based on the companies’ closing stock prices on July 5. Dish Network shareholders will hold approximately 69% of the combined company, while EchoStar shareholders will hold 31%.

The combined company will be led by EchoStar CEO Hamid Akhavan, with Dish Network’s CEO Erik Carlson stepping down upon closure of the deal. Charles Ergen will assume the role of executive chairman, and Dish Wireless COO John Swieringa will become the COO of the new entity. The board will consist of 11 members, including seven Dish directors, three EchoStar independent directors, and Akhavan.

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