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Charles Ergen, the telecommunications entrepreneur, is close to finalizing a deal to merge his major holdings, Dish Network and EchoStar. The merger is aimed at providing Ergen with the financial flexibility to build a nationwide wireless network capable of competing with industry giants like AT&T and Verizon.

While the precise terms of the deal are unknown, it is expected to be announced soon, possibly as early as Tuesday. The price is rumored to be a discount to the recent surge in EchoStar stock, but still a premium to previous trading prices. Dish currently has a market value of about billion, while EchoStar’s value is approximately half of that.

The merger would bring together Dish’s pay-TV business and fledgling 5G network with EchoStar’s satellite-communications infrastructure. Dish serves millions of pay-TV and cellphone customers through brands like Sling TV and Boost Mobile and has obtained valuable spectrum licenses to support its wireless ambitions. EchoStar operates a satellite fleet that provides services to HughesNet home-internet users as well as business and government clients.

Ergen, who co-founded EchoStar in 1980, controls both Dish and EchoStar. Over the years, the companies have shifted assets, with Dish acquiring certain assets in 2017 and reaching a deal in 2019 to purchase EchoStar’s broadcast-satellite business. Ergen stepped down as CEO of Dish in 2017 but remains chairman of both companies.

Dish has been investing heavily in the wireless sector, aiming to move away from its declining pay-TV business as more consumers cut the cord. The company expects its 5G network to cost over billion to build, which has put pressure on its free cash flow and led to distressed levels of debt trading. However, Ergen believes Dish still has several options at its disposal.

In contrast, EchoStar reported having .7 billion in cash as of March 31 and continues to generate cash. The company’s strong position is expected to grow further as it brings its new Jupiter 3 satellite online. Ergen has been working to regain investor confidence in his wireless strategy, as Dish shares hit record lows this year. Last month, reports emerged that Ergen was exploring a potential deal between EchoStar and Dish.

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