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Dish Network has announced its merger with satellite operator EchoStar, a move that will reunite billionaire Charlie Ergen’s telecom empire and create a company worth approximately billion. The merger is aimed at addressing the growing competition Dish faces from larger U.S. carriers, such as AT&T and Verizon Communications.

Dish, which spun off EchoStar in 2008, has been looking to expand beyond satellite TV into streaming TV and mobile telecom services. However, it has struggled to compete with its larger rivals. Through this all-stock deal, Dish’s pay-TV business and its 5G network will be combined with EchoStar’s satellite infrastructure, which serves retail, business, and government clients. This consolidation will enhance their cash flow and reduce immediate capital expenditure needs.

The deal stipulates that EchoStar stockholders will receive 2.85 Dish Network Class A shares, representing a 12.9% premium to EchoStar’s closing stock price on July 5. Following the news of the merger, EchoStar’s shares fell 5%, while Dish’s stock rose 4%.

Charlie Ergen, who co-founded Dish, owns over half of its outstanding shares and nearly 60% of EchoStar. Upon completion of the merger, Ergen will serve as executive chairman, and EchoStar CEO Hamid Akhavan will lead the combined company. The merger is expected to be finalized by the end of this year.

The merger not only bolsters Dish’s liquidity by granting access to EchoStar’s .7 billion cash reserve but also improves Dish’s leverage. According to Refinitiv data, Dish currently has a market value of .07 billion, while EchoStar holds a market value of .97 billion.

Additionally, both Dish and EchoStar posted second-quarter revenue figures that slightly exceeded analysts’ average estimates.

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